---
title: "Unfair preference issues table"
url: "https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/unfair-preference-issues-table"
type: "precedent"
site: "AI Law Framework"
id: "a8-unfair-preference-issues-table"
area_id: "A8"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A8-T1-R6", "A8-B2-2"]
law_stated_as_at: "2026-10-22"
---

# 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.

Canonical page: https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/unfair-preference-issues-table  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Insolvency, Restructuring & Bankruptcy](https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy.md)
- Jurisdictions: Commonwealth
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 4 authorities it cites, for Commonwealth.

## 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](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/build-a-voidable-transaction-and-preference-issues-table.md)
- [Draft a voidable-transaction investigation chronology](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/draft-a-voidable-transaction-investigation-chronology.md)

## 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.

## Authorities

- [Corporations Act 2001 (Cth) s 588FA](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ca2001172/s588fa.html)
- [Corporations Act 2001 (Cth) s 588FC](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ca2001172/s588fc.html)
- [Corporations Act 2001 (Cth) s 588FE](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ca2001172/s588fe.html)
- [Corporations Act 2001 (Cth) s 588FG](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ca2001172/s588fg.html)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/unfair-preference-issues-table and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*