Preferences
/ˈprɛfərənsɪz/
Definitions
- (n.) Rights or claims accorded priority over others under legal rules or agreements.
Certain creditors hold preferences that allow them to be paid before others in bankruptcy.
- (n.) Assets or benefits transferred to a party that gives them an advantage over other parties, especially in insolvency contexts.
The court examined whether the debtor made preferences to insiders before filing for bankruptcy.
Forms
- preference (singular)
Related terms
Commentary
In legal contexts, 'preferences' commonly refer to preferential transfers or priority rights, particularly in insolvency law; clarity is essential to distinguish from general uses of 'preference'.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.