Is this a preference or a fraudulent transfer or nothing at all?
Posted: Tue Oct 12, 2010 11:39 pm
Listmates,
Please help me think this through.
Client (individual) owns 75% of a corp. Corp owes a $50K debt to
investor who is a relative of Client. Client is not a cosigner on
that debt. Corp has 50K in cash. Corp pays off the debt to investor
and is left without assets. Within the applicable preference period,
client files bankruptcy. Corp does not file bankruptcy.
When the corp paid off its debt to investor,
1. Was there a preference in the Client's bankruptcy case?
2. Was there a fraudulent transfer in the Client's bankruptcy case?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
Cal. CD, Los Angeles
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