In bankruptcy proceedings, a(n) ____ is the debtor's favoring of one creditor over others by making payments or transferring property to that creditor at the expense of the rights of other creditors. Such payments may be recovered by the bankruptcy trustee.

A. unauthorized payment
B. preference
C. preexisting payment
D. priority


Answer: B

Legal Studies & Paralegal

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Fill in the blank(s) with the appropriate word(s).

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