Using a payday loan service

[leo_075]

Before my job laid me off a couple of weeks ago, they cut my hours back a lot due to a slow in business. I cut up cc's a long time ago knowing I would be filing in March. I needed cash when my hours were cut back so I used a payday loan service to get me by. I used this service 3 times and have it paid back of course. I didn't think about it until now (I'm filing in 2 weeks), is this bad that I had to do this? And paying it back - is that considered preferential payment? I'm in Florida.

Thanks.

[emoney]

Yes, but it is not likey the trustee will make them repay your payments to your BK estate.
regards,
emoney

[BKFLA]

Interesting...how is cash advance place considered a preferential payment if they're not family or friends? Our attorney said just don't pay family or friends back, but wouldn't Leo_075's situation be totally different since he/she needed that money to survive?

[oldbaddebts]

Family or friends would be an "inside transaction", which is a separate issue than preferential. Paying the Payday loan places as agreed shouldn't be an issue, but if you were in collections with them and paid them $1k right before filing then it might be looked at as preferential.