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.
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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.
