Bankruptcy Preferences: Are These Lawsuits Really Fair?

Part 2 of the Introduction to Bankruptcy Preferences.

Bankruptcy preferences are best described as ironic: in creating a law supposedly based on fairness, Congress has created a law that unfairly punishes a defendant who has done nothing wrong. It is an awesome and an awful power.

This video explains that due to the presumption of insolvency during the 90 days before a debtor files for bankruptcy, Congress believes that all creditors should suffer equally.