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Preferential Transfers
Bankruptcy Judge Dan Collins discusses preferential transfers and transfer avoidance in a master class. He explains that preferential transfers are transfers made to creditors that enable them to receive more than they would in a chapter 7 bankruptcy, and these transfers can be avoided to ensure equitable treatment of creditors. The five elements of a prima facie preference case are as follows: the transfer must (1) benefit a creditor; (2) be for an antecedent debt; (3) have been made while the debtor was solvent; (4) have been made within 90 days of bankruptcy (or one year for insiders); and (5) enable the creditor to receive more than in a chapter 7 bankruptcy. Defenses to preference actions include contemporaneous exchanges, ordinary course of business transactions, purchase-money security interests, subsequent new value, and net improvement of position on floating liens.
Duration:
21 minutes 25 seconds
Hon. Daniel P. Collins is a U.S. Bankruptcy Judge for the District of Arizona in Phoenix, appointed on Jan. 18, 2013. He served as chief judge from 2014-18 and is presently a conflicts judge in the Districts of Guam, Hawaii and Southern California. Previously, Judge Collins was a shareholder with the Collins, May, Potenza, Baran & Gillespie, P.C. in Phoenix, practicing primarily in the areas of bankruptcy, commercial litigation and commercial transactions. He is president of the National Conference of Bankruptcy Judges, is a Fellow in the American College of Bankruptcy, served on ABI’s Board of Directors, is on the board of the Phoenix Chapter of the Federal Bar Association and is a member of the University of Arizona Law School’s Board of Visitors. He also is a founding member of the Arizona Bankruptcy American Inn of Court. Judge Collins received both his B.S. in finance and accounting in 1980 and his J.D. in 1983 from the University of Arizona.
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