Preferential payment

Related terms

• Preference

  A transaction that puts one creditor or guarantor in a better position than they would otherwise have been in insolvency and may be challengeable if statutory conditions are met.

• Antecedent transaction

  A transaction entered into before insolvency that may later be reviewed, challenged or reversed under insolvency law.

• Transaction at an undervalue

  A transfer, gift or transaction where an insolvent person or company receives significantly less value than it gives, potentially allowing the transaction to be challenged.