Preference

A transfer of the debtor's property to or for the benefit of a creditor, for or on account of an antecedent debt, made while the debtor was insolvent, within 90 days before bankruptcy (or within one year before the petition was filed in an "insider" situation), and the effect of which was to give the creditor more than he would have otherwise received in a Chapter 7 distribution. The trustee's power to avoid preferences is designed to achieve the policy of fostering equality of distribution among the creditors of an insolvent debtor.

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