Of the following, which is a payment that is treated as a voidable preference un
ID: 377977 • Letter: O
Question
Of the following, which is a payment that is treated as a voidable preference under bankruptcy law?
Question 13 options:
A transfer in the ordinary course of business.
A payment to a purchase-money security interest creditor.
A payment to a business's main supplier for a preexisting debt.
A payment of a fully secured loan.
All of the above are voidable preferences once the debtor files a petition for bankruptcy relief.
A transfer in the ordinary course of business.
A payment to a purchase-money security interest creditor.
A payment to a business's main supplier for a preexisting debt.
A payment of a fully secured loan.
All of the above are voidable preferences once the debtor files a petition for bankruptcy relief.
Explanation / Answer
A voidable (as per bankruptcy law) is transaction is a payment of money, transfer of property or other transaction from the Bankrupt’s assets to a related or unrelated third party that effectively causes a detriment to the Bankrupt
So option e is correct (All of the above are voidable preferences once the debtor files a petition for bankruptcy relief.)
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