May 10

ANTECEDENT TRANSACTION

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A transaction that has taken place prior to a Personal Insolvency Agreement or bankruptcy that can be recovered or clawed back by the Trustee. They include transactions where less than market value has been paid for an asset in consideration of a transfer in ownership or a transfer has been made to defeat right of access by creditors or preferential payments are made to specific Creditor. A Trustee has the ability to recover the asset or difference in purchase price paid. Certain time limits apply to these transactions.


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