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Simple English definitions for legal terms

subsequent-advance rule

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A quick definition of subsequent-advance rule:

Subsequent-Advance Rule: In bankruptcy, if a debtor gives money or property to a creditor before filing for bankruptcy, the bankruptcy trustee can take it back and distribute it to all creditors equally. However, if the creditor gave the debtor new money or property after receiving the preferential transfer, and the new money or property is not secured, and the creditor has not been paid back, then the trustee cannot take back the preferential transfer.

A more thorough explanation:

The subsequent-advance rule is a principle in bankruptcy law that allows a creditor to keep a preferential transfer made by the debtor if certain conditions are met.

According to the rule, a preferential transfer will not be avoided or rescinded by the debtor's bankruptcy trustee if:

  1. The creditor extended new value to the debtor after receiving the preferential transfer
  2. The new value is unsecured
  3. The new value remains unpaid after its transfer

For example, let's say a debtor owes money to a supplier and makes a payment to them shortly before filing for bankruptcy. The bankruptcy trustee may try to recover that payment as a preferential transfer. However, if the supplier later extends new credit to the debtor and that credit remains unpaid after the bankruptcy filing, the subsequent-advance rule would apply and the trustee would not be able to recover the earlier payment.

Another example could be a bank that has a security interest in a debtor's property. If the debtor makes a payment to the bank shortly before filing for bankruptcy, the trustee may try to recover that payment. However, if the bank later extends new credit to the debtor and that credit remains unpaid after the bankruptcy filing, the subsequent-advance rule would apply and the trustee would not be able to recover the earlier payment.

subsequent | subsequent creditor

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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
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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