What is a preferred transaction in a bankruptcy?

Bankruptcy offers a lot facilitate to debtors in financial need. While there are benefits, the rights of the debtor are somewhat limited and their actions are checked in bankruptcy. The trustee has the power to examine, transmits a debtor actions that the debtor was acceptable to two years before filing bankruptcy. A transaction that is preferred is a means of transmission that searches the trustee. Preferential preferential TransferA, transferring or the transaction that is preferred a payment to a lender before the bankruptcy of the trustee is preventable. Preferential be taken into account, the amount paid must be the creditor in a chapter 7 receive bankruptcy if the debtor insolvent and within the time limits laid down in the Bankruptcy Code has been made. If you have a not loan at your local bank you bankruptcy repay the month before because you don't want in the repository recorded for example, the trustee may determine that the transaction preferential.Time Framethe look-back period for a preferred transfer 90 days prior to the submission of the petition or from 90 days to a year prior to the submission if the assignee was that a trustee in bankruptcy TransferIf insider.Avoid determines that a preferred transaction has taken place which can the requirements of the bankruptcy code prevent the transmission of the trustee. Avoid the transfer, requires the trustee of the money transfer is returned. Once that funds are funds returned to all creditors unsecured equally.New ValueOne defence are distributed, preferential transfer request is that the transaction was carried out, at the same time again with the new value to the debtor, which means that the debtor has received for payment im pay something given as opposed to the old debts. A neuedie transaction is considered a preferred transaction, the payment of a debt.Securit InterestAnother of potential PréalableDéfense movement created the interest of security for the new property, acquired by the debtor. This is only applicable if the interest of security within 30 days of receiving property of the debtor is perfected.