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Capital University Law Review


preference laws, bankruptcy, debtor-creditor statutes


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 in the same case, each to a separate transfer. Therefore, the real test of the importance of the Ohio preference law will have to be made in the courts when and if trustees begin to exercise this neglected avoidance power. This article may stimulate that process.