in bankruptcy, the payment of a debt to one creditor rather than dividing the assets
equally among all those to whom he/she/it owes money, often by making a payment
to a favored creditor just before filing a petition to be declared bankrupt. Such
a preference is prohibited by law, and the favored creditor must pay the money to
the bankruptcy trustee. However, the bankruptcy court may give secured creditors
(with a judgment, lien, deed of trust, mortgage or collateralized loan) a legal
preference over "general" creditors in distributing available funds or assets.
law dictionary, legal
dictionary, online law dictionary, legal terms dictionary,
online legal dictionary, legal definition, legal
terms and definition, Best online Dictionary, Law
Dictionary Software, Download Law Dictionary, law
dictionary, legal dictionary, online law dictionary,
legal terms dictionary, online legal dictionary,
legal definition, legal terms and definition, Best
online Dictionary, Law Dictionary Software, Download
Law Dictionary
