Preferential Payment Definition | Becker

Accounting Dictionary

Preferential Payment

A transfer made by the debtor to or for the benefit of a creditor for an antecedent debt that resulted in the creditor receiving more than the creditor would have received under the Bankruptcy Code. The transfer must have been made within 90 days of the petition (within one year of the petition if the creditor was an insider) and made while the debtor was insolvent. Also called "voidable preference.

Back to Dictionary

Now Leaving Becker.com

You are leaving the Becker.com website. Once you click “continue,” you will be brought to a third-party website. Please be aware, the privacy policy may differ on the third-party website. Adtalem Global Education is not responsible for the security, contents and accuracy of any information provided on the third-party website. Note that the website may still be a third-party website even the format is similar to the Becker.com website.

Continue