What would you do?

[t&msmom]

Okay, I have one for you. Is a preferential payment only one made that is over $600? (I'm wondering when I can try to pay my parents back. They loaned us $500 for our retainer fee. Is it prefential to pay them back because it's under the $600?)

Also, DH's parents put in an order for a couple of hunting knives back before we knew we would be filing. It is only $30. If we cut them a check, will the trustee want to know why we gave them the $30?

[lrprn]

Okay, I have one for you. Is a preferential payment only one made that is over $600? (I'm wondering when I can try to pay my parents back. They loaned us $500 for our retainer fee. Is it prefential to pay them back because it's under the $600?)

If the total amount paid during the 90 days before filing to any non-secured creditor is under $600, then it isn't a preferential payment.

Also, DH's parents put in an order for a couple of hunting knives back before we knew we would be filing. It is only $30. If we cut them a check, will the trustee want to know why we gave them the $30?

The trustee will not care about a $30 check no matter who you write it to.

[t&msmom]

But what about an insider preferential payment? I read SOMEWHERE something about $200 in a year???

[lrprn]

But what about an insider preferential payment? I read SOMEWHERE something about $200 in a year???

According to http://goliath.ecnext.com/coms2/gi_0...ntion-And.html, the current bankruptcy law extends the trustee's "look back" for insiders to one year.

I checked multiple online sources and there's no mention that the $600 total dollar amount varies for insiders compared to other non-secured creditors, but your lawyer can confirm or correct that.