What Is the Significance of a Court Deeming That a Payment

question 31

Multiple Choice

What is the significance of a court deeming that a payment made by an insolvent debtor is a fraudulent preference and,as such,is void?

• A) Assets will be returned to the estate by way of transaction reversal.
• B) All payments for services given must be reversed and repaid.
• C) All payments to trade creditors must be reversed and repaid.
• D) Assets transferred to relatives prior to insolvency must be reversed.

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Definitions:

Stagnation

A period of minimal growth, development, or progression, often associated with feelings of being stuck.

Identity Development

The formation of a distinct personality of an individual regarded as a persisting entity in a particular stage of life in which various factors contribute to one's sense of self.

Commitment

The state or quality of being dedicated to a cause, activity, or relationship, showing a willingness to stay engaged over time.

Foreclosure

A legal process by which a lender tries to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.