John's Brother, Phil, Loaned Him $10,000 to Start His Business

question 46

Multiple Choice

John's brother, Phil, loaned him $10,000 to start his business.John didn't do too well and planned to file for bankruptcy.In May, he gave Phil his car worth $8,000 to satisfy the debt.John filed his petition in November.After liquidation, if the car were included in his assets, every unsecured debtor would have received 85% of the debt owing to him.Will this be a voidable preference?

• A)Yes, since Phil is an insider.
• B)No, because the transfer was made more than 90 days prior to filing.
• C)Yes, because the transfer was made for an antecedent debt.
• D)No, because Phil did not receive preferential treatment over other creditors.

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Definitions:

Amarna

An archaeological site of an ancient Egyptian city noted for the Amarna Period under Pharaoh Akhenaten, during which radical artistic and religious changes occurred.

Edfu

An Egyptian city known for its well-preserved Ptolemaic temple, dedicated to the falcon god Horus, which is one of the best-preserved temples in Egypt.

Temple

A building dedicated to religious or spiritual activities, such as worship and prayer, commonly associated with a particular deity or religion.

Horus

An ancient Egyptian god, typically depicted as a falcon or a man with a falcon's head, representing the sky, war, and hunting, and known as a protector of the pharaoh.