Pamela plans to file for bankruptcy under Chapter 7.One month before filing,Pamela gives Marshall's Filling Station $500 to apply to her gas bill,since Marshall has been so kind to let her charge the gas she needed for her car over the past year.The bankruptcy trustee:

Question

Quizplus · Accepted Answer

The payment to Marshall's Filling Station one month before filing for bankruptcy can be considered a preferential transfer, as it gives Marshall's Filling Station an unfair advantage over Pamela's other creditors. As such, the bankruptcy trustee has the authority to cancel the payment as a voidable preference, and the $500 will be included in Pamela's bankruptcy estate.

Pamela Plans to File for Bankruptcy Under Chapter 7