A Transfer of Property by the Debtor to a Creditor

question 53

Multiple Choice

A transfer of property by the debtor to a creditor may be set aside as a __________ transfer and the property recovered by the debtor's trustee in bankruptcy if (1) the transfer was made to pay a debt incurred at some earlier time;(2) the transfer was made when the debtor was insolvent and within ninety (90) days before the filing of the bankruptcy ;and (3) the transfer resulted in the creditor receiving more than the creditor would have received in a liquidation of the debtor's estate.

• A) predetermined
• B) preternatural
• C) preordained
• D) preferential

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Definitions:

Capacity

In legal terms, the ability to understand the nature and effects of one's actions, specifically in forming contracts or executing wills.

Assignable

Refers to the capability of transferring rights or interests in a contract or financial instrument to another party.

Revoked

The act of officially canceling or rescinding a legal right, license, permission, or privilege.

Firm Offer

A binding proposal to sell or buy goods that holds the offering party to its terms for a certain period.