What you are talking about are preferential transfers which are prohibited among unsecured creditors because they are expected to share in a distribution of the bankrupt estate on a pro-rata basis regardless of the amount of their claim. There is a priority assigned to various claimants for distribution. Unsecured creditors are the low men on the totem pole. They get paid after all those with superior priorities are paid. Most of the time there are few if any funds left to pay the unsecured creditors from the bankrupt estate after payment of those with priority of claims are paid. The best that I have ever seen is 5 cents to 10 cents on the dollar, and that was considered good. Many times there is nothing left for the unsecured creditors.
So how does one divide nothing among the remaining unsecured creditors?
Would it not seem more logical to pursue a more productive avenue of recovery?
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