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The Main Difference Between a Transfer at Undervalue and a Preference

Question 57

Multiple Choice

The main difference between a transfer at undervalue and a preference is that


A) a transfer at undervalue involves an assignment, whereas a preference only involves a proposal.
B) a transfer at undervalue involves a transfer of property by the debtor for little or no value, whereas a preference gives preferential treatment to a particular creditor.
C) a transfer at undervalue involves a payment of money, whereas a preference involves other types of property.
D) a transfer at undervalue involves the Bankruptcy Court, whereas a preference involves the trustee.
E) a transfer at undervalue must be in writing, but a preference can be done orally or by conduct.

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