On Sat, 20 Nov 2004 20:10:23 GMT, wrote:


This is done to prevent (or at least mitigate) blatant fraud by the
bankrupt in the form of transferring assets out of the company into
friendly hands to protect them. Like a lot of things about bankruptcy
it is a two-edged sword.

Which is bull, of course, since a small-scale businessman
who provided goods and services and was paid for them
is hardly practicing "blatant fraud." On the other hand,
it gives some additional money back to the primary creditors,
who almost always happen to be banks or others well-
connected, and it's a great source of revenue for the bankruptcy
attorneys, since they usually collect a third of anything they can
scare or bully people into coughing up, these people being,
of course, the little guys who can't afford the fancy attorneys
to fight back.