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Which of the Following Is the Most Likely Result of a Claim

Question 64

Multiple Choice

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 is presumed 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 that the jewelry store received more through the transfer than the jewelry store would have received through bankruptcy proceedings.
C) The payment is presumed 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 Mindy's insolvency at the time and that the jewelry store received more through the transfer than the jewelry store would have received through bankruptcy proceedings.
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:

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