Joel's CD- making business is looking shaky in March, and in October he transfers the title to his house to his wife for $1. Immediately thereafter he files for bankruptcy. The transfer to his wife could be challenged by creditors as

Question

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A preference is a transfer of property to a creditor within 90 days of bankruptcy filing. In this case, the transfer of the house to Joel's wife is a preference because it was made within 90 days of his bankruptcy filing.

Joel's CD- Making Business Is Looking Shaky in March, and in October