§ 7387 — Void preferences of creditors

Delaware § 7387

• Jurisdiction: Delaware
• Title: 10
• Part: Special Proceedings
• Ch. 73: INSOLVENCY
• Subch.: Voluntary Assignments

Text

Whenever any person, in contemplation of insolvency or in contemplation of taking the benefit of any of the insolvent laws of this State, makes an assignment of his or her estate or effects for the benefit of creditors, and by such assignment, either under its provisions or otherwise, prefers any creditor to others, or in or by such assignment, secures or pays to any creditor a greater proportion of his or her debt or demand than shall be secured or paid to all his or her creditors, every such assignment so giving a preference shall be deemed fraudulent and absolutely void, and the estate or effects contained therein shall be liable to be taken in execution, or attached, for the payment of such assignor’s debts, as fully as if no such assignment had been made; and whoever makes such fraudulent assignment shall forever be deprived of the benefit of any insolvent law of this State.

Legislative History

Code 1852, § 2915; Code 1915, § 4795; Code 1935, § 5282; 10 Del. C. 1953, § 7387; 70 Del. Laws, c. 186, § 1