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Congress is currently considering several proposals for revision of the Bankruptcy Act. One of the important changes advanced in the proposals is the redefinition of a "voidable preference." This concept, part of bankruptcy law for more than a century, has been part of section 60 of the present Act since 1898. Section 60, in its present form, gives a trustee in bankruptcy the power to set aside or avoid certain transfers by the bankrupt as preferential, and to recover the transferred assets for the benefit of the bankrupt's unsecured creditors. The importance of section 60 has been recognized in recent years as it has become "the principal conduit for discussion of the extent to which security interests [are] (or should be) good against or voidable by the trustee in bankruptcy."
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