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LSDefine

Simple English definitions for legal terms

surrender of a preference

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A quick definition of surrender of a preference:

Surrender of a preference: When someone owes money and they give something valuable to a creditor to pay off the debt, but the court later decides that this was not fair to other creditors, the creditor may have to give back what they received. This is called surrendering a preference. The creditor gives back what they received so that the trustee can distribute the money or property fairly among all the creditors.

A more thorough explanation:

Definition: Surrender of a preference is a term used in bankruptcy law. It refers to the act of a creditor giving up a transfer, assignment, encumbrance, or conveyance that is considered voidable. This is done as a condition for the creditor to be allowed to make a claim in the bankruptcy proceedings.

Example: Let's say a debtor owes money to two creditors, A and B. The debtor transfers a valuable asset to creditor A, which is considered a preference because it gives A an advantage over B. If the debtor files for bankruptcy, the trustee can demand that creditor A surrenders the asset to the bankruptcy estate. This is done to ensure that all creditors are treated equally and that no one receives preferential treatment.

Another example: A company owes money to several suppliers. One of the suppliers, who is also a shareholder in the company, receives a payment that is considered a preference because it was made shortly before the company filed for bankruptcy. The trustee can demand that the supplier surrenders the payment to the bankruptcy estate so that it can be distributed among all the creditors.

The examples illustrate how the surrender of a preference works in practice. It is a way to prevent creditors from receiving preferential treatment and to ensure that all creditors are treated equally in a bankruptcy proceeding.

surrender of a criminal | surrender of charter

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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
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
almost all of my apps have been UR for 6 weeks at this point I feel exhausted waiting for them to finish
Irvine is being snobby and wont start any review until end of Nov.
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