Best Bankruptcy Lawyers in Anderson, IN

New Post: What are Preferential Payments in Bankruptcy? - Prior to filing for bankruptcy, it is not uncommon for debtors to feel as though they have to make tough decisions regarding which creditors they can pay and which ones they can’t. This is usually because they don’t have the money to pay all of them, so they feel they need to rank which ones are more important to pay first. Unfortunately, this decision to prioritize paying one creditor over another can complicate their case should they decide to file for bankruptcy. These payments made to some creditors over others can be considered preferential payments in bankruptcy cases. Though a debtor may have just been trying to do what they thought was best, the courts and your bankruptcy trustee may not see it that way. Bankruptcy Code on Preferential Payments Bankruptcy code is in place to ensure everyone is paid fairly. So, if you file for bankruptcy and it is determined that you made preferential payments to one creditor over others, the Trustee assigned to oversee your case could go to the preferred creditor, get the funds back, and distribute them evenly amongst your creditors. The code more specifically defines preferential payments to a non-insider as: payments made to a single creditor on a debt that existed prior to the time the payment was made the payments exceeded $600 in the 90 days before filing the total amount that was paid exceeds the amount that creditor would have received in bankrupt...