Legal Question in Bankruptcy in California

Depending on the type of legal entity that files for bankruptcy, and the chapter of the Bankruptcy Code under which relief is requested, and also depending on the amount and circumstances, the bankruptcy trustee could seek to recover recent payments made to creditors as "preferences." In other words, debtors don't always get to pick and choose which creditors they're going to pay immediately before filing for bankruptcy. Any recovery of the "preference" would become part of the bankruptcy estate and would then be distributed among the creditors in accordance with the code.