Thirty-one days before filing a petition in bankruptcy, Gavin transfers property and makes payments that favor one creditor over another. These are

Question

Thirty-one days before filing a petition in bankruptcy, Gavin transfers property and makes payments that favor one creditor over another. These are​

Quizplus · Accepted Answer

The described actions of Gavin are known as preferences, which occur when a debtor transfers property or favors one creditor over another in the 90-day period preceding a bankruptcy filing. These actions are scrutinized by the bankruptcy court and can be voided or reversed to ensure fairness and equality among creditors. The other choices are not relevant to the scenario.

Thirty-One Days Before Filing a Petition in Bankruptcy, Gavin Transfers