Preference Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Preference, written in plain English, along with examples of how it is used.

What is Preference?

n.Accoring to laws of bankruptcy when a person goes bankrupt before writing a court order to declare it he might make a prefernce to pay off certain creditor rather then dividing his assets equally among his creditors.This is illegal and it is the court who decides to pay off the secured creditors before the general creditors.