Voidable Preferences financial definition of Voidable Preferences
voidable preference (redirected from Voidable Preferences)
The transfer of assets
to a secured creditor
less than 90 days before a bankruptcy
filing. The voidable preference means one secured creditor is favored over others. After bankruptcy is filed, the trustee in bankruptcy
may prevent this creditor from receiving the assets and instead transfer them to another creditor.
In bankruptcy law, the notion that a transfer of property within a certain time period before filing for bankruptcy may be set aside,because it takes property out of the bankruptcy estate and may diminish the money available for unsecured creditors.There does not have to be any showing of fraudulent or dishonest intent.
References in periodicals archive
i) to allow a non-debtor swap participant or the trustee to terminate a swap agreement so that a swap agreement could only continue after the bankruptcy is filed only by mutual consent of the non-debtor swap participant and the trustee; (ii) to permit immediate termination in order to minimize exposure to market volatility; and (iii) to address the need for swap participants to be able to close out existing transactions without fear that (a) closing out swaps would violate the stay, (b) a debtor would opportunistically reject unfavorable swaps and assume favorable ones; or (c) the transactions would be challenged as voidable preferences
These measures dealt with voidable preferences
in bankruptcy law.
Bankruptcy prediction models, voidable preferences
and fraudulent conveyances are each covered in this chapter.
A check for voidable preferences
or fraudulent transfers likewise yields nothing of consequence.