A transfer of property by the debtor to a creditor may be set aside as a __________ transfer and the property recovered by the debtor's trustee in bankruptcy if (1)the transfer was made to pay a debt incurred at some earlier time;(2)the transfer was made when the debtor was insolvent and within ninety (90)days before the filing of the bankruptcy ;and (3)the transfer resulted in the creditor receiving more than the creditor would have received in a liquidation of the debtor's estate.

Question

Quizplus · Accepted Answer

The described transfer is known as a preferential transfer. The conditions for a transfer to be considered preferential are listed in the question, and only the option "D) preferential" accurately reflects this concept.

A Transfer of Property by the Debtor to a Creditor