Priority Debts
One of the most important aspects of bankruptcy is that all debts are not equal. "Priority" debts are treated special in a number of ways.
If you pay on or pay off certain debts it may create a preferential payment
Do you feel like you should pay on or pay off a certain debt now, even though you're behind on all your debts? It may be dangerous to do so.
Bankruptcy Timing and the Holidays: “Preferenceâ Payments
You may have extra motivation and greater ability to repay a personally important debt this time of year. But maybe you shouldn't.
Crucial Question: Is It OK to Pay a Special Creditor Before Filing Bankruptcy to Keep It Out of the Bankruptcy Case?
Not a good idea. If you do your friendly creditor may have to turn over to the trustee whatever you paid it. So it wonât be so friendly.
