How do the courts define or determine who is an insider for preference purposes in bankruptcy? What is the standard that is used to determine who is an insider?
There are steps you can take to avoid a preference action in your bankruptcy case. There are several preference defenses available to you in bankruptcy.
If you paid a relative or friend any money owed prior to filing for bankruptcy, then you may need to wait to file for bankruptcy. You may also be able to use a defense to this preference.