The Problem with Preferences

7 Pages Posted: 8 Nov 2014

See all articles by Daniel J. Bussel

Daniel J. Bussel

University of California, Los Angeles (UCLA) - School of Law

Date Written: November 6, 2014


This paper critiques Brook Gotberg’s recent proposal to reform preference law by creating a new safe harbor for preferences in chapter 11 while repealing certain existing preference defenses in chapter 7. The proper path of reform in this area would preserve preference recovery as a feature of chapter 11 reorganization law while raising the monetary limits on minimum recoveries, restricting financial contract safe harbors and bolstering ordinary trade creditor defenses across both chapter 11 and chapter 7.

Keywords: bankruptcy law, chapter 11, preference law, reorganization law, safe harbors, unsecured creditors, bankruptcy payments

Suggested Citation

Bussel, Daniel J., The Problem with Preferences (November 6, 2014). 100 Iowa Law Review Bulletin 11 (2014); UCLA School of Law, Law-Econ Research Paper No. 14-14. Available at SSRN:

Daniel J. Bussel (Contact Author)

University of California, Los Angeles (UCLA) - School of Law ( email )

385 Charles E. Young Dr. East
Room 1242
Los Angeles, CA 90095-1476
United States
310-206-7977 (Phone)
310-825-6023 (Fax)

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