5 Collier on Bankruptcy P 547.05


Summary

The keystone of a preference is a transfer of an interest in the debtor’s property within 90 days (or one year, in the case of an insider) before the bankruptcy petition is filed. Section 547(e) turns the word “transfer” into a term of art. A transfer for purposes of section 547(b) is not necessarily made at the time when the debtor and the transferee effected a completed and irrevocable transfer as between themselves (and therefore may not have occurred outside of the lookback period). Under section 547(e), the time of the transfer may depend upon when the transaction was perfected against third parties.

Section 547(e)(2)1Link to the text of the note provides that, for the purposes of section 547, a transfer is made—

  • (A) at the time such transfer takes effect between the transferor and the transferee, if such transfer is perfected at, or within 30 days after, such time, except as provided in subsection (c)(3)(B);2Link to the text of the note