Thirty-one days before filing a petition in bankruptcy,Frida transfers prop?erty and makes payments that favor one creditor over another.These are

Question

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Frida's transfer of property and favoring one creditor over another could constitute a preference, which is a preferential treatment given to a creditor shortly before filing for bankruptcy. Preferential payments or transfers made within 90 days before filing for bankruptcy can be recovered by the bankruptcy trustee and distributed fairly among all creditors.

Thirty-One Days Before Filing a Petition in Bankruptcy,Frida Transfers Prop?erty