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

Unexpected Benefit: Ways to Resolve a Preference Mess

Wasson and ThornhillBankruptcy Law

A possible preference mess is the forced repayment of your pre-bankruptcy payment to a relative or friend. Here are two solutions.   Last week’s blog post introduced an uncomfortable problem: preference payments to a friendly creditor. (If you haven’t already please read that one before reading further here.) The Solutions We ended that blog post by listing and giving short … Read More