Refer to Fact Pattern 30-1B. Based on the size of the studio’s estate in bank­ruptcy, each of Jazz’s creditors will get only 10 percent of their claims. Regarding the payment to Music, Inc., the trustee may
A. not recover it because Music’s claim has priority.
B. not recover it unless Music is an in­sider.
C. recover it as a fraudulent transfer.
D. recover it as a voidable preference.
Answer:D
Refer to Fact Pattern 30-1B. Based on the size of the studio’s estate in bank­ruptcy, each of Jazz’s creditors will get only 10 percent of their claims. Regarding the payment to Music, Inc., the trustee may
A. not recover it because Music’s claim has priority. B. not recover it unless Music is an in­sider. C. recover it as a fraudulent transfer. D. recover it as a voidable preference.