A few creditors involuntarily petitioned Chris into bankruptcy. As with any bankruptcy, a trustee was tasked with reviewing Chris's records. Among other transactions, the trustee discovered the following payments 12 days before the bankruptcy petition was filed:
- A $375 donation to the Jude Children's Research Hospital
- A cash purchase of $1,500 worth of inventory for "Candles by Chris," a store that Chris owns.
- A payment of $95 for a water bill
The trustee is thinking about setting aside each of these transfers as a preference. What would you advise?
Hello. I hope this will be helpful. I will advice Chris on the exemptions rule to preference transfers. I will advise Chris... View the full answer