Arthur Was Involuntarily Petitioned into Bankruptcy by Three of His

question 52

Essay

Arthur was involuntarily petitioned into bankruptcy by three of his creditors. When the trustee reviewed Arthur's books and records, the trustee discovered the following transactions: (a) Three weeks before the filing of the petition, Arthur paid cash for $17,000 worth of inventory for his store; and (b) Twelve days before the filing of the petition, Arthur paid $300 in full satisfaction of his store's most recent electric bill.?The trustee is considering attempting to set aside both of these transfers as preferential transfers. Discuss the advisability of the trustee's attempt to set aside these transfers.

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Definitions:

Benefit

A benefit is an advantage or profit gained from something.

Commensalism

A relationship between two living organisms where one benefits without harming the other.

Orchid

A diverse and widespread family of flowering plants with blooms that are often colorful and fragrant, known for their complex structures.

Tree Trunk

The main wooden axis of a tree, supporting branches and leaves and transporting nutrients and water.