We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Non-Statutory Insider Status: Closeness Not Enough

Law360 (October 22, 2008, 12:00 AM EDT) -- Under the Bankruptcy Code, certain transfers or payments made to a creditor by a debtor prior to its bankruptcy may be avoided.

In general, a transfer may be avoided as a preference if (i) the transfer was made to or for the benefit of a creditor, on account of antecedent debt, while the debtor was insolvent, within 90 days of the bankruptcy filing; and (ii) the transfer enabled the creditor to receive more than it would have received in a liquidation under Chapter 7 had the...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.