§547 Preferential Transfers in New York

How 11 U.S.C. § 547 applies in New York — federal bankruptcy law, New York district data.

What §547 Preferential Transfers Does

If you paid a creditor more than $600 in the 90 days before filing (or 1 year for insider transfers), the trustee may "avoid" that payment as a preferential transfer and recover the money for distribution to all creditors equally. This rule protects the fundamental bankruptcy principle of equitable distribution.

Key points:

90-day lookback for ordinary creditors, 1-year for insiders (family, business affiliates)
Ordinary-course-of-business and subsequent-new-value are two common defenses
Consumer threshold — $600 minimum (§547(c)(8))
Preference avoidance is a trustee action, not a debtor action

New York Bankruptcy Data (FJC)

127,960

Total filings

66.5%

Dismiss rate

40,064

Prior filers

15.7%

Prior discharge rate

Apply This to Your Case

The rules above are federal — they apply identically in every state. What varies by state is exemptions (§522), median income thresholds (means test), and case-law interpretations of ambiguous terms. For a New York-specific answer, check the screener or consult a local attorney.

What §547 Preferential Transfers Does

New York Bankruptcy Data (FJC)

Apply This to Your Case

Related New York Statutes

§547 Preferential Transfers in Other States