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Preferential transfers

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hlpj

Junior Member
What is the name of your state (only U.S. law)? California

Hello. Got a question about exemptions to paying back Preferential transfers when it comes to bankruptcy (of company).

New value: creditor sells the debtor something they later sell to a third party. Can debtor just say that they couldn't sell what the creditor provided them for a higher price? And have the creditor pay back the margin.
 


adjusterjack

Senior Member
"Say it"?

Yes.

Win on the point?

Maybe, maybe not.

Depends on a lot more details than you have shared.

Have you filed for bankruptcy? Did you sell something that you bought from a creditor? Has your creditor filed an adversary action?

If this is just a hypothetical, please take it elsewhere.
 

latigo

Senior Member
What is the name of your state (only U.S. law)? California

Hello. Got a question about exemptions to paying back Preferential transfers when it comes to bankruptcy (of company).

New value: creditor sells the debtor something they later sell to a third party. Can debtor just say that they couldn't sell what the creditor provided them for a higher price? And have the creditor pay back the margin.
You aren't making an sense! But if you are interested in knowing what constitutes a voidable preferential transfer by a debtor in bankruptcy, then either become acquainted Section 547 of the Bankruptcy Act or consult with any attorney that is.
 

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