An Example of a “Preference”
A "preference" makes more sense when you see an example. Here's one. This also helps explain how to avoid creating one.
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.
The Limited Power to Force a Creditor to Surrender Your Garnished Wages
Once garnished, that portion of your wages or salary is forever gone. With one exception.
Creditors to Whom You Feel a Special Loyalty
In bankruptcy it's okay to FEEL differently towards some creditors than others. You can also sometimes ACT differently, but only if you very carefully follow the rules.
