ADVANCED ISSUES IN AVOIDANCE

4. The Transfer Was Made While the Debtor Was Insolvent. A debtor is "presumed to have been insolvent on and during the 90 days immediately preceding the date of the filing of the petition." 11 U.S.C. § 547(f); see Anderson-Smith, 188 B.R. at 684; Grove Peacock Plaza, Ltd. v. Resolution Trust Corp. (In re Grove Peacock Plaza, Ltd.), 142 B.R. 506 (Bankr. S.D. Fla. 1992). The trustee must prove that the debtor was insolvent at each of the transfers at issue.
5. The Transfer Was Made on or Within 90 Days Before the Filing of the Petition. When a payment is made by check, the transfer occurs at the time the check is honored by the drawee bank. Barnhill, 503 U.S. at 400, 112 S. Ct. at 1390 118 L. Ed. 2d at 47 (for the purposes of payment by ordinary check, a "transfer" as defined by section 101(54) occurs on the date the check is honored, and not before); Anderson-Smith, 188 B.R. at 684-85; Ellenberg v. Mercer (In re Home Co.), 108 B.R. 357, 359 (Bankr. N.D. Ga. 1989).
6. The Defendant Received More Than It Would Have from a Liquidation. To establish a preferential transfer, the plaintiff must also show that the defendant received more than it would have had the transfer not been made, had the case been one under Chapter 7 and had the Defendant received payment only to the extent provided by the Bankruptcy Code. See Martin, 184 B.R. at 991; McColley v. Navaro Gem Ltd. (In re Candor Diamond Corp.), 68 B.R. 588, 594-95 (Bankr. S.D.N.Y. 1986). As a practical matter, this element of a preference is always satisfied where a debtor transfers property to an unsecured creditor, and the creditor would receive less than 100% in the Chapter 7 liquidation. Candor, 68 B.R. at 595; Barash v. Pub. Fin. Corp., 658 F.2d 504, 508-09 (7th Cir. 1981).

Once a plaintiff meets its burden of proving that the transfers are voidable as preferential transfers under section 547(b), the burden of proof shifts to the defendant to prove that it is entitled to one of the affirmative defenses under section 547(c) of the Bankruptcy Code. 11 U.S.C. § 547(g); Anderson-Smith, 188 B.R. at 684; Martin, 184 B.R. at 994; Tolz v. Signal Capital Corp. (In re Mastercraft Graphics, Inc.),