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Preferential transfers do not require an intent to defraud; the effect of the transfer itself matters.

Floating liens (like a floating charge) can complicate the determination of what constitutes a preferential transfer.

Preferential payments to one unsecured creditor can unfairly disadvantage others by diminishing the debtor's estate.

Recovery of preferential payments can affect the feasibility and structure of the debtor's reorganization plan in Chapter 11 cases.

Certain payments, like those made in the ordinary course of business, may not be considered preferential.

The ability of a bankruptcy trustee to recover preferential transfers made to creditors and redistribute them equitably.

Secured creditors are less likely to be involved in preferential transfers due to the nature of their secured interests.

The period prior to bankruptcy filing during which preferential transfers are scrutinized, typically 90 days for ordinary creditors and one year for insiders.

A transfer made to an insider (such as a relative or business associate) can be subject to increased scrutiny.

A transfer made to a creditor before bankruptcy that gives the creditor more than they would receive in the debtor's bankruptcy case.

The trustee has the authority to challenge and void preferential transfers during the bankruptcy process.

Creditors can invoke certain defenses, like subsequent new value and ordinary course of business, to counter preference claims.

A defense that allows a creditor to avoid a preference claim if they provided new value to the debtor after the alleged preferential transfer.

A transfer that results in a creditor receiving more than they would under Chapter 7 liquidation rules.