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Business Glossary

Business Definition for: voidable preference

Dictionary of Banking Terms

voidable preference

transfer of assets by a debtor filing a voluntary bankruptcy petition in favor of one creditor at the expense of other secured creditors. If the transfer was made in the 90 days prior to filing the petition, or was made in anticipation of a bankruptcy filing, the bankruptcy trustee may set aside the preference.

Referring Terms:

preference
bankruptcy

Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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