20+ hour, 49+ min ago (678+ words) US'bankruptcy law is designed to promote and reconcile two core policy objectives: providing relief to financially distressed debtors and ensuring the equitable treatment of creditors vis--vis the debtor and other'creditors. US bankruptcy law is designed to promote and reconcile two core policy objectives: providing relief to financially distressed debtors and ensuring the equitable treatment of creditors vis--vis the debtor and other creditors. In furtherance of these policies, the Bankruptcy Code authorizes a debtor or bankruptcy trustee to initiate a lawsuit to claw back a payment made to a vendor within 90 days before the bankruptcy case, if it was made on account of an existing debt and allowed the vendor to receive more than they otherwise would have received in a hypothetical liquidation had the payment not been made. These payments are called "preferences" because they ostensibly prefer certain…...