Payment Anticipating Bankruptcy was Void
A debtor may not pay a creditor on the eve of his bankruptcy, with the intention of preferring that creditor over others – to do so is void as a fraud on the bankruptcy laws and n creditors generally because ‘it is defeating the equality that is introduced by the statutes of bankruptcy and the criminal (for the bankrupt is considered as a criminal) is taking upon himself to prefer whom he pleases’.
Lord Mansfield
[1746] EngR 5, (1746-1779) 1 Black W 660, (1746) 96 ER 384, (1768) 1 Wm Bl 660
Commonlii
Fraudulent Conveyances Act 1571
England and Wales
Insolvency
Leading Case
Updated: 02 November 2021; Ref: scu.380393