The Bankruptcy Reform Act of 1994 solved what has come to be known as the "Deprizio" preference problem. But one of the temporary solutions found for the problem may provide a continuing benefit to lenders.

By way of background, the Deprizio problem stemmed from the Bankruptcy Code's definition of preference. Generally speaking, a preference is a transfer of an insolvent debtor's property, to or for the benefit of a creditor, made on account of a pre-existing debt.

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