Certain transfers of property by the debtor to a creditor within 90 days of filing may be set aside by the bankruptcy trustee as __________ transfers, and the transferred property recovered by the trustee.

Question

Quizplus · Accepted Answer

The term used in bankruptcy law for transfers of property made by a debtor to a creditor within the 90-day period before filing for bankruptcy is preferential transfers. Such transfers may be set aside by the bankruptcy trustee to ensure that all creditors receive an equal distribution of the debtor's assets.

Certain Transfers of Property by the Debtor to a Creditor