preference Hear it!

preference definition - legal

n

A debtorÂ’s transferring of property to a creditor in advance of filing a bankruptcy petition, so that the creditor receives more than would have been received under bankruptcy, to the detriment of other creditors.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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