preference

[rilbrianne]

is paying your current rent and other bills a preference? I have old debt and recent debt (not newer than 6 months) but I have been paying my rent and a few other necessary expenses. Will my rent be considered preferential because I paid my landlord instead of other debtors??

I know this may be a stupid question but those seem to be the ones you come up with at 1:12 am when you are thinking about whether or not you actually did your paperwork correctly.... hee hee

Ok, I need some shut eye.... I thought I was relieved and now I'm not. Ugh, I can't wait 'til it's over.

[rilbrianne]

oh yeah, i need laymen's terms... I'm not really alive at this point so... what I mean is that I have searched immensely and cannot find a comprehensible answer to the "is rent a preference" question. I keep getting things about past rent or late rent or "how to avoid eviction during bankruptcy". I just pay monthly, no lease, no contract, just payin' my rent every month.

[CindyLou]

you should always pay your primary living expenses, food, shelter, transporation, utilties, healthcare. etc, you would pay these first. Credit cards and other unsercured debts area always secondary. These are the debts that would be considered preferential if you are filing bankruptcy. Your primary living expesenses are necessary therefore cannot be considered preferrential.

[JRScott]

Paying of your rent, utilities, transportation, food, shelter is not considered preferential . (They are necessary to living )

[lrprn]

In addition to what Cindy and JR already said...

For a payment to be preferential, more than $600 total has to be paid to one unsecured creditor without paying other unsecured creditors the same amount within 90 days of filing. Examples of unsecured debt are credit cards or an unsecured loan.

Rent isn't unsecured debt. It's fine to pay regular bills like rent, utilities, and secured debts like car payments before and after you file - no worries!

[rilbrianne]

lol, ok so it was a crazy question but I gotta make sure to dot my i's right? I may be laughing at myself right now but at least I'm not pulling out my hair.

Thanks everyone!