Richter v. McGalloway

There is no doubt that the placing of $2,125 in Mrs. Boyle’s account at the National Exchange Bank in the manner described results in a preference. It is conceded that no creditor other than a secured or preferred creditor will receive more than a small percentage of his claim out of the bankrupt estate of the Commercial Company. In order to maintain his claim, the trustee in bankruptcy must show that the preference caused by this payment was a preference of Mrs. Boyle, as well as that the payment is within the terms of sec. 60b of the Bankruptcy Act, 11 USCA, § 96 (b), and therefore a…