Mindy Liked to Spend and Had a Large Amount of Consumer

Mindy liked to spend and had a large amount of consumer debt for items such as jewelry, clothing, a personal watercraft, and a new car. Mindy was having problems making her credit card payments as they became due. She, however, wanted to make every effort to pay her debts. On September 1^st she repaid a loan to Friendly Jewelry Store because she wanted to remain on good terms with the manager. Unfortunately, Mindy was simply unable to continue making payments; and on November 1^st of that same year, she filed a voluntary petition for bankruptcy relief under Chapter 7. A number of her creditors complained because Friendly Jewelry Store received more from the early payment by Mindy than would have been received in bankruptcy proceedings. 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 was preferential on the basis that it was made within 90 days of the filing of the bankruptcy petition.
C) The payment was 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.
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 two years of the filing of the bankruptcy petition.