Checklist · Insolvency, Restructuring & Bankruptcy
Unfair preference issues table
Issues table for a payment said to be an unfair preference, using sections 588FA, 588FC, 588FE(2) and 588FG. It does not demand repayment.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- Commonwealth
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the 4 authorities it cites, for Commonwealth.
- Version
- 1
- Source
- Written for this library
When to use it
Use when a liquidator or a creditor is sorting payments before a letter of demand or a defence is written.
Used for these tasks
- Build a voidable-transaction and preference issues table
- Draft a voidable-transaction investigation chronology
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
The tool lists payments by date and amount from a bank statement the lawyer supplies, and the lawyer decides which payments are in the relation-back period and whether a defence is open.
AI may
- List payments with dates and amounts from the statement.
- Mark a running account where the lawyer says the payments are part of one relationship.
AI must not
- Do not conclude that a payment is an unfair preference or is voidable.
- Do not draft a letter of demand or a defence.
- Do not calculate the relation-back day. The definition was not opened.
The lawyer checks
- Section 588FA(1) requires a transaction between the company and the creditor that gives the creditor more, in respect of an unsecured debt, than it would receive if it proved in the winding up.
- A secured debt is unsecured to the extent the debt is not reflected in the value of the security.
- Section 588FE(2) is the six-month path read for this table. Other subsections of section 588FE were not set out.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
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- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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