A Preference Example

Wasson and ThornhillPre-Bankruptcy Planning

Here’s an example of a preference—paying a favored debt before filing bankruptcy.  If you know what it is, it’s usually not hard to avoid.   Last week we explained why paying a creditor before filing bankruptcy could cause problems during bankruptcy. That’s especially true if the creditor you pay is one that you have personal reasons to favor. We explained the circumstances in which such a … Read More

Paying a Special Debt Before Bankruptcy Could Be a Preference

Wasson and ThornhillPre-Bankruptcy Planning

You may feel like paying a special debt, and during this time of the year you may even get some extra money to do it. Maybe you shouldn’t.   Last week we explained how giving a significant gift before bankruptcy could cause problems during bankruptcy. This also applies to selling something for much less than it is worth. Such a gift or sale might … Read More