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Debtor files for bankruptcy on December 1, 2020. The bankruptcy trustee will find the following things. Tell me if each of these are examples of
Debtor files for bankruptcy on December 1, 2020. The bankruptcy trustee will find the following things. Tell me if each of these are examples of a preferential treatment or not, and then provide a full explanation for your decision. Each one is worth 10 points 3 for stating it is or is not a preferential treatment and 7 for a full explanation for your decision. (total of 40 points for this section)
- Debtor and First Bank entered into a loan agreement on February 1, 2020. The loan was for $100,000 at 5% interest. This was an unsecured loan. The loan was to be paid back on August 1, 2020 in full (102500). The debtor did not repay on August 1st but did send a partial payment of $25,000 to First Bank on September 30, 2020.
- Same as above except the loan was to be paid back in one year with monthly payments of $8250. The debtor made payment every month starting with March 1st and ending on December 1st.
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