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Simple English definitions for legal terms

preferential transfer

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A quick definition of preferential transfer:

A preferential transfer is when a person who owes money to many people gives more money or property to one of those people before they declare bankruptcy. This is not fair to the other people who are owed money. If this happens, the person in charge of the bankruptcy can take back the extra money or property and give it to everyone equally. This is called a voidable preference or preferential assignment.

A more thorough explanation:

A preferential transfer is a transfer made by an insolvent debtor to a creditor before filing for bankruptcy. This transfer allows the creditor to receive more than their fair share of the debtor's assets. For example, if a debtor owes money to multiple creditors but pays off one creditor before filing for bankruptcy, that payment is considered a preferential transfer.

However, if the transfer occurs no more than 90 days before the bankruptcy petition is filed or within one year if the creditor is an insider, the bankruptcy trustee may recover the preferential transfer for the benefit of the bankruptcy estate. This is because the transfer gives the creditor an unfair advantage over other creditors.

For instance, if a debtor sells a valuable piece of property to a family member for less than its market value and then files for bankruptcy, the bankruptcy trustee can recover the property from the family member and distribute it among all the creditors equally.

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gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
9:42
My name is renard99 and I just sent @babycat feet pics
glovediedthisishismom
9:42
nobody is at the office today they should let little glovey go home and watch harry potter
Dkk
9:49
Lmfao, Gross
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