Similarly, minors even if they misrepresent their age cannot be bound to contracts they sign; these are said to be voidable but not void.
In England a preference given by an insolvent, or an individual rendered insolvent thereby, to a creditor other than an associate of the debtor is voidable if it was made within six months prior to the filing of the bankruptcy petition and was motivated by the desire to give a preference.
The contract is said to be voidable at his discretion.
In the United States, except in the case of insiders, the preference period is 90 days before the date of the petition; transfers to existing creditors made within that period that have a preferential effect are voidable, unless the debtor was neither insolvent at the time of the preferential transfer nor rendered insolvent thereby or unless the payment was made in the regular course of business.
In the civil-law countries that do not adhere to a general relation-back doctrine, such as Germany, Italy, or Portugal, preferential transfers to creditors prior to an adjudication may be voidable, but the governing laws vary materially as to the relevant time frames and types of preferences.
Payment of matured debts made by other than normal means and security interests granted for preexisting unmatured debts are voidable if made within two years prior to the adjudication unless the creditor shows that he was ignorant of the debtor's state of insolvency.
In Argentina the payment of matured debts with ordinary means may be voidable if the creditors knew of the cessation of payments.
In addition, all acts committed with the intent to prefer a creditor are voidable for five years after their execution, if the intent was recognizable by the creditor.
In Switzerland voidable preferences consist in the grant, without prior obligation to that effect, of security interests for existing debts; satisfaction of debts by other than usual means of payment; or premature payment of debts, if the respective acts were committed within six months prior to the adjudication, while the debtor was insolvent.
The voidable act may not precede the adjudication by more than six months.
