Solved

[Friends and Family] Jasleen Was Very Close to Her Family

Question 82

Multiple Choice

[Friends and Family] Jasleen was very close to her family and friends. She also liked to spend money, and had a large amount of consumer debt for items such as jewelry, clothing, a personal watercraft, and a new car. Jasleen was having problems making her credit card payments as they became due, but she wanted to make every effort to pay her debts. She had borrowed money from her mother for some jewelry and repaid that loan on January 1st. She repaid a loan to her business partner on May 15th of the same year. On September 1st of that year, she also repaid a loan to Friendly Jewelry Store because she wanted to remain on good terms with the manager. Unfortunately, Jasleen was simply unable to continue making payments and on November 1st of that year, she filed a voluntary petition for bankruptcy relief under Chapter 7.
-Which of the following is the most likely result of a claim of preferential payment based on the payment to the jewelry store?


A) The payment was not preferential because it was for a consumer good and was not made within 30 days of the filing of the bankruptcy petition.
B) The payment will be considered preferential if the trustee is able to establish that the jewelry store received more through the transfer than it would have received through bankruptcy proceedings.
C) The payment will be considered preferential on the basis that it was made within 90 days of the filing of the bankruptcy petition only if the trustee is able to establish Jasleen's insolvency at the time of the payment.
D) Because it was for a consumer good, the payment was not preferential unless the bankruptcy trustee can prove intent to defraud.
E) The payment was preferential because it was made within 90 days of the filing of the bankruptcy petition.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents