Loan Payments to Secured Creditors as Preferences under the 1984 Bankruptcy Amendments

On July 10, 1984, President Reagan signed into law the Bankruptcy Amendments and Federal Judgeship Act of 1984 (the "1984 Bankruptcy Amendments"). This enactment made many sweeping changes in both the substantive and procedural law of bankruptcy. Perhaps the most interesting and important of the substantive changes are those affecting the law of preferences. The purpose of this article is to examine those changes from a very particular focus, that of the secured creditor receiving a loan payment during the period of the debtor's slide into bankruptcy. I. Introduction II. Overview of Preference Law under the Bankruptcy Code III. Loan Payments to Secured Creditors and Preference Law IV. Loan Payments to Secured Creditors and Preference Law: Exceptions to Avoidability under the Revised Bankruptcy Code V. Conclusion