preferential payments Archives

Sometimes in bankruptcy doing the honestly right thing can cause you major problems. Making preference payments is a good example of this.

Make your bankruptcy trustee work for you by retrieving your recent payments to, or garnishments by, creditors--to your benefit.

Prevent your trustee from giving you a big headache if you paid a debt to a friend or relative during the year before filing bankruptcy.

Avoid the frustrating surprise of having one your friendly creditors be challenged by your bankruptcy trustee with a preference action.

Preferences can be dangerous but can also present potential opportunities. So although not all that common, they're worth knowing about.

You may have extra motivation and greater ability to repay a personally important debt this time of year. But maybe you shouldn't.

Doing what you believe is the right thing can backfire, if you pay a special creditor before you file bankruptcy.

Be careful about trying to be nice and paying back relatives and friends in order to keep them out of your 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.

If you're careful it's easy to avoid the rude surprise of hurting the friend, relative or other creditor you paid before filing bankruptcy.

If you're careful it's easy to avoid the rude surprise of hurting the friend, relative or other creditor you paid before filing bankruptcy.