BANKRUPTCY LAW (Preferential Transfer): The bankruptcy court abhors, and will seek to undo, what it considers a preferential transfer.
A debtor who paid off serial overdrafts to his bank within 90 days of filing bankruptcy made preferential transfers. The court reasoned that the bank already had the deposits, and was effectively receiving extra money, that it would have been barred from receiving HAD the bankruptcy already been filed. The trustee was entitled to receive reimbursement for the amount of the overdraft payments.
In re Agriprocessors, Inc., 859 F.3d 599, 8th Circuit 2017
