On January 10, Dudley Doright borrows $10,000 from Snidely Whiplash in order to purchase certain equipment. At the very same time, Doright signs a note promising to repay the $10,000 and also signs a security agreement granting Snidely a security interest in that same equipment, which Doright acquires later that day. On January 15, Doright files 540a bankruptcy petition. On January 20, Snidely files a financing statement with respect to the transaction. 

Will Doright's bankruptcy trustee be able to avoid Snidely's security interest under section 547?

Answer rating: 100% (QA)

Under Section 547 of the Bankruptcy Code a bankruptcy trustee has the power to avoid certain prefere... View the full answer