Preferential Transfer Law and Legal Definition
A preferential transfer in the federal bankruptcy code is defined as “any transfer of an interest of the debtor in property –
(1) to or for the benefit of a creditor;
(2) for or on account of an antecedent debt owed by the debtor before such transfer was made;
(3) made while the debtor was insolvent;
(4) made –
(A) On or within ninety days before the date of the filing of the petition; or
(B) between ninety days and one year before the date of the filing of the petition, if such creditor at the time of such transfer was an insider; and
(5) That enables such creditor to receive more than such creditor would receive if –
(A)The case was a case under chapter 7 of this title;
(B) the transfer had not been made; and
(C) such creditor received payment of such debt to the extent provided by the provisions of this title." Old Republic Nat'l Title Ins. Co. v. Escrow & Title Servs., 2009 U.S. Dist. LEXIS 102456 (W.D. Mich. Nov. 4, 2009)
