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The Use Of Ohio's Preference Law In Bankruptcy: An Alternative To Section 547 With A Longer "Reach-Back" Period, Thomas D. Buckley

Law Faculty Articles and Essays

Ohio is one of the few states with a preference law of general application among its debtor-creditor statutes. Ohio Revised Code sections 1313.56 and 1313.57 give creditors an avoidance power similar to a bankruptcy trustee's avoidance power under federal bankruptcy law. While this article compares the federal and state preference rules, evaluating the pratical significance of the differences between them, the relative strength of the two laws is less important than the fact that the bankruptcy trustee can choose whichever of the two laws is more effective with respect to any given prebankruptcy transaction. Thus, both laws might be applied …