PREFERENTIAL TRANSFER

preferential transfer: Certain transfers or payments made to creditors within 90 days before the bankruptcy is filed may be reversed and recovered by the bankruptcy court. Where the creditor is an insider (relative, shareholder, etc.) the 90 days is extended to one year. The recovery of these preferential payments is a method to provide an equal distribution among creditors of the same class.
A debtor owes many creditors but pays one "friendly creditor" in full just before filing the bankruptcy petition.This payment could most likely be recovered by the trustee to be spread among all creditors. (Bernstein's Dictionary of Bankruptcy Terminology)

preferential transfer: Certain transfers or payments made to creditors within 90 days before the bankruptcy is filed may be reversed and recovered by the bankruptcy court. Where the creditor is an insider (relative, shareholder, etc.) the 90 days is extended to one year. The recovery of these preferential payments is a method to provide an equal distribution among creditors of the same class.A debtor owes many creditors but pays one "friendly creditor" in full just before filing the bankruptcy petition. This payment could most likely be recovered by the trustee to be spread among all creditors.

preferential transfer—Seeu preference. American Banker Glossaryu...Financial and business terms