Question Preferential payments

[didi768]

We didn't know when we would be filing but I've always had it where I pay my bank cash rewards credit card in full each month (auto payments on their end) to avoid any interest. Now I could just KICK myself for doing that. Will I have to wait 90 days now to file? Now I am only paying the minimums on them. We just are not sure when we can file yet. We are waiting til the next wage garnishment threat from the lawyer. He has been dickering around now for 8 yrs. He keeps garnishing employers whom we don't work for anymore.

[despritfreya]

You need to discuss with a qualified attny whether or not those payments are preferential. Sounds to me that they are a substantially contemporaneous exchange for value and/or paid in the ordinary course of your financial affairs. Seer 11 USC 547(c)(1) and (2).

Des.

[justbroke]

And personally, I would not worry about preferences of this type. Worse case is that the Trustee goes after the creditor to recover any "preference", and then the Trustee would disperse it amongst all unsecured creditors. There are cases where you may be concerned and those only cases are where the person is an insider such as your parent, child, close friend or relative. In those cases, you may want to protect them. However protecting the bank from the Trustee is not such a case where you should be concerned!