Question: If a chapter 11 debtor-in-possession had made a payment for a prior, pre-existing debt 100 days prior to the petition date for the bankruptcy, the
If a chapter 11 debtor-in-possession had made a payment for a prior, pre-existing debt 100 days prior to the petition date for the bankruptcy, the preferred creditor can automatically be required to return such payment to the estate of the bankrupt debtor by the trustee or an action of the creditors committee, because there is a presumption that the debtor was insolvent at the time of the payment
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