A transfer made to a relative 6 months before filing a bankruptcy petition is most likely a preferential transfer.

Question

Quizplus · Accepted Answer

According to bankruptcy law, a transfer made to a relative within 2 years of filing a bankruptcy petition may be deemed a preferential transfer and can be subject to reversal or recovery by the bankruptcy trustee. However, if the transfer was made outside the 2-year period, it may not be considered preferential. Therefore, a transfer made 6 months before filing a bankruptcy petition is likely to fall within the 2-year period and can be considered a preferential transfer.

A Transfer Made to a Relative 6 Months Before Filing