- fraudulent preference
Under the Bankruptcy and insolvency Act, this is the preferring by a debtor of one or more creditors over others by the payment to those creditors of some extraordinary amounts of money. Under the Bankruptcy and insolvency Act, the Trustee can, under certain circumstances, set aside fraudulent preferences up to three months prior to the date of bankruptcy in the case of arm's length parties and one year in the case of non-arm's length parties. The Provinces also have Acts that can set aside these transactions. (Dictionary of Canadian Bankruptcy Terms)
United Glossary of Bankruptcy Terms 2012.
Glossary of Bankruptcy.
Look at other dictionaries:
fraudulent preference — a term formerly used in Scots insolvency law to describe a payment by a debtor to a favoured creditor, now replaced by the concept of unfair preference. Collins dictionary of law. W. J. Stewart. 2001 … Law dictionary
fraudulent preference — Putting a creditor of a company into a better position than he would have been in, at a time when the company was unable to pay its debts. If this occurs because of an act of the company within six months of winding up (or two years if the… … Big dictionary of business and management
fraudulent preference — Giving a creditor an undue advantage over other creditors in securing his agreement to a composition. 15 Am J2d Comp Cred § 8. The act of a debtor in preferring one of his creditors by making payment to him with intent thereby to hinder, delay,… … Ballentine's law dictionary
fraudulent preference — noun : a payment to or advantage conferred on one creditor in fraud of the rights of other creditors by an insolvent debtor … Useful english dictionary
preference — pref·er·ence / pre frəns, fə rəns/ n 1: the right to prior payment of a debt with preference over the creditors of the heirs or legatees Louisiana Civil Code 2: the transfer of an insolvent debtor s interest in property to a creditor for an… … Law dictionary
preference — The right of one person over other persons, to be appointed administrator, for example, the right of a surviving spouse. 31 Am J2d Ex & Ad §§ 50 et seq. A right given to a stockholder of a corporation to subscribe at a stated price for shares of… … Ballentine's law dictionary
fraudulent conveyance — n: a conveyance of property made for the purpose of rendering the property unavailable for satisfaction of a debt or otherwise hindering or defeating the rights of creditors; specif: a conveyance of property that is made in return for inadequate… … Law dictionary
Fraudulent conveyance — A fraudulent conveyance, also fraudulent transfer is a civil cause of action. It arises in debtor/creditor relations, particularly with reference to insolvent debtors. The cause of action is typically brought by creditors or by bankruptcy… … Wikipedia
fraudulent preferences — See preference … Black's law dictionary
Unfair preference — In many legal systems, where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an… … Wikipedia