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ohaa [14]
3 years ago
9

Thirty-one days before filing a petition in bankruptcy, Gavin transfers property and makes payments that favor one creditor over

another. These are​ ​affirmation agreements. ​preferences. ​secured interests. ​unsecured debts.
Business
2 answers:
Nookie1986 [14]3 years ago
5 0

Answer:

preferences

Explanation:

Preference' : This occurs when a particular creditor is placed in a more beneficial position, to the detriment of the remaining creditors in that group. And by doing so makes that creditor "better off" than the majority of other creditors in the group.

fiasKO [112]3 years ago
3 0

Answer:

preferences

Explanation:

Preferences in bankruptcy proceedings include any property transfer or payments carried out in favor of an specific creditor over the rest, this shows that the debtor gave preference to that specific debtor.

Preference payments or transfers can be declared null by the courts or bankruptcy trustee and they may order to recover the transferred property or payments carried out to that specific creditor.

E.g. you are about to declare bankruptcy and you owe money to your brother, you cannot transfer him the title of your house because it would be considered a preference by the bankruptcy trustee.

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