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Simple English definitions for legal terms

insider preference

Read a random definition: Chicago Board Options Exchange

A quick definition of insider preference:

Insider preference: When someone favors or gives priority to a person or thing that they are close to or have a special relationship with. In bankruptcy, it refers to a transfer of property by a debtor to someone they have a close relationship with within a certain time frame before filing for bankruptcy. This type of transfer can be challenged and reversed by the bankruptcy court. In business, it can also refer to a preferred shareholder's right to receive a specified distribution before common shareholders receive anything when a corporation is liquidated.

A more thorough explanation:

Definition: Insider preference refers to the act of favoring one person or thing over another, especially when it comes to priority of payment given to one or more creditors by a debtor. It can also refer to a transfer of property by a bankruptcy debtor to an insider more than 90 days before but within one year after the filing of the bankruptcy petition.

Examples:

  • A company filing for bankruptcy may prefer to pay off certain creditors who are insiders, such as family members or business partners, before paying off other creditors.
  • A debtor may transfer property to an insider, such as a family member or business partner, in an attempt to protect it from being seized by creditors during bankruptcy proceedings.
  • A preferred shareholder may have insider preference when it comes to receiving a specified distribution before common shareholders receive anything during a corporation's liquidation.

These examples illustrate how insider preference can give certain individuals or entities an advantage over others, often to the detriment of those who are not insiders. It can also be used to manipulate the bankruptcy process or unfairly distribute assets during liquidation.

insider information | insider report

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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