Payments that can be avoided if made within 6 months before liquidation for unconnected parties are referred to as?

The correct term for payments that can be avoided if made within six months before liquidation for unconnected parties is "Preferential Payments." This concept arises from insolvency law, which aims to ensure that when a company is facing liquidation, all creditors are treated fairly. Preferential payments refer to those made to one creditor over others shortly before the company declares insolvency, which might give that creditor an undue advantage.

In this context, if a payment is made to a creditor who is not connected to the company (i.e., not related or having a close personal association), and it occurs within the specified timeframe before liquidation, the liquidator has the authority to potentially reverse that transaction to ensure that all creditors have an equal chance of recovering what they are owed. This stands in contrast to other types of transactions that may not have the same implications when it comes to fairness among creditors.

Payments at undervalue relate to transactions where the consideration received is significantly less than what was given, but they are distinct from preferential payments in their definition and implications. Unlawful payments generally refer to payments made in violation of laws, but they don't specifically address the timing or the context of insolvency. Preferential transactions can sometimes be an interchangeable term with preferential payments, but