preference

noun | \ ˈpre-frəns, -fə-rəns \ | pref·er·ence

1. : the right to prior payment of a debt with preference over the creditors of the heirs or legatees —Louisiana Civil Code

2. : the transfer of an insolvent debtor's interest in property to a creditor for an earlier debt that gives the creditor more than the creditor would otherwise receive (as under a bankruptcy settlement) — called also voidable preference; compare antecedent debt at debt, fraudulent conveyance, general assignment at assignment

   Note: Preferences can be voided by a bankruptcy trustee because they diminish the bankruptcy estate out of which other creditors will be paid. Preferences must be made during a period (as 90 days before the date of filing a bankruptcy petition) established by bankruptcy law in order to be voidable. Perfection or grant of a security interest during this period is also a preference. The bankruptcy law states exceptions under which payments to creditors are not voidable preferences.

3. : priority