Which type of payment does an insolvent debtor make that gives preferential treatment to one creditor over another creditor?
A)A deferential payment
B)A payment in equity
C)A preferential payment
D)A liquidated payment
E)A non-liquidated payment

Question

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Because a major purpose of the Bankruptcy Code is to prevent debtors from making payments to one creditor and thus treating that creditor preferentially,the trustee has the power to recover preferential payments.Preferential payments are payments made by an insolvent debtor that give preferential treatment to one creditor over another.

Which Type of Payment Does an Insolvent Debtor Make That