Preferences are a type of transfer made by a debtor to a creditor before a bankruptcy petition is filed that the trustee may avoid and force the creditor to pay back to the estate. 11 U.S.C. § 547(b). The bankruptcy system was created to promote fairness to creditors while at the same time provide debtors a fresh and new financial start. Therefore, the payment of creditors must be equitable and no one creditor can be favored over another. This equitable principle applies, even before the debtor has filed for bankruptcy.
