"Preference Payments" Made by the Debtor to One Creditor to the Detriment

question 4

Multiple Choice

"Preference payments" made by the debtor to one creditor to the detriment of all other creditors within 90 days before the bankruptcy petition was filed:

• A) is reduced from the monies available to the general unsecured creditors.
• B) is usually written off.
• C) may be recovered and returned to the cash available for all creditors.
• D) are not recovered, as management assurances are binding.

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Definitions:

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