Fraudulent Preference: Canada Debt .ca defines Fraudulent Preference

Bankruptcy Term Fraudulent Preference

<<< Back

Canada Debt has the definition to the bankruptcy and debt term Fraudulent Preference. Finding answers to terms such as Fraudulent Preference can be difficult, especially if there is more than one definition which is why we have created a page dedicated to financial terms dealing exclusively with debt. Fraudulent Preference in financial terms means...

In debt and bankruptcy terms, the phrase / term 'Fraudulent Preference' is used as follows:

Under the Bankruptcy and Insolvency Act, this is the preferring by a debtor of one or more creditors over others by the payment to those creditors of some extraordinary amounts of money. Under the Bankruptcy and Insolvency Act, the Trustee can, under certain circumstances, set aside fraudulent preferences up to three months prior to the date of bankruptcy in the case of arm's length parties and one year in the case of non-arm's length parties. The Provinces also have Acts that can set aside these transactions.