Agnes Plans to File for Bankruptcy Under Chapter 7

question 39

Multiple Choice

Agnes plans to file for bankruptcy under Chapter 7.One month prior to filing,Agnes gives Joe's Filling Station $700 to apply to her gas bill.Joe has been so kind to let her charge the gas she needed for her car over the past year.The bankruptcy trustee appointed to the case

• A)can cancel the payment to Joe as a fraudulent transfer.
• B)cannot cancel the payment to Joe because it is payment for an existing debt.
• C)cannot cancel the payment to Joe because he is not an insider.
• D)can cancel the payment to Joe as a voidable preference.

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Definitions:

Cohesion

The degree to which members of a group or society are united in their beliefs, values, or purpose.

Group Conformity

The phenomenon where individuals adjust their behavior or attitudes to align with the norms of a group.

Group Norms

Shared expectations within a group about how members should behave.

Group Conformity

The process of aligning one's attitudes, beliefs, and behaviors to those of the group due to real or imagined pressure.