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The rules on preference generally apply only when the debtor does not have sufficient property to pay his debts. These rules are inapplicable when there is enough to pay everyone. Specifically, these rules apply only when the following concur:
1. There are two or more creditors.
2. The debtor’s assets are not enough.
3. The claims held by various creditors have
been established (in a proper proceeding).
4. All the credits must be due.
1. There are two or more creditors.
2. The debtor’s assets are not enough.
3. The claims held by various creditors have
been established (in a proper proceeding).
4. All the credits must be due.
