top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Would this be considered preferential payment?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Would this be considered preferential payment?

    I owe a relative alot of money. I expect to get a few thousand dollars in the near future. I would like to put the relative on my list of "minimum payments" and begin to pay back my loan, say $400-500/month.

    I'm current in all my cc payments so far.

    I know once student loans come off deferrment, it'll be tough to make the minimums then.

    Will it raise a flag if I begin to pay my relative? I am already a year over due on the loan with them.

    Thanks for any advice.

    #2
    Relatives are Insiders. You're gonna have to disclose all payments and transfers of assets to Insiders for the last year preceding filing BK.

    So, Yeah,............. Paying the Relative could be a real problem for your relative.

    The Trustee can go back to the relative and take all the money you've paid to that person "for the benefit of your Creditors".
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

    Comment


      #3
      Maybe you could post some more details. Another way of looking at your situation is:
      Able to stay current on all debts with an additional $500 disposable income.

      That doesn't sound very bankrupt to me.
      Preferential treatment may be one of many issues with your case.

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X