Challenging debtor’s transactions resulting in preference to one of the creditors over other creditors

This article analyzes the contestation of the debtor's transactions, which entail giving preference to one of the creditors over other creditors. The paper concludes that proving the creditor's knowledge of the debtor's insolvency is a complex process, especially in cases of bankruptcy. Quite often the courts require the creditor to prove that he not only did not know about the insolvency, but also could not have known about it. This is a high standard of proof that may create barriers for creditors to protect their legitimate interests.