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Preferred payments

Posted on: 20th Aug, 2012 03:03 am
i am thinking of filing bankruptcy. i have heard of preferred payments. can you please clear up what exactly are preferred payments?
The actual term for preferred payment is “preferential payment” or “preference”. Well, this is a payment that you make to a creditor within a window of time before you file bankruptcy. This payment can be recovered by a Trustee from the recipient and then used to pay all unsecured creditors based upon a pro-rata basis.
Posted on: 20th Aug, 2012 03:21 am
Hi abc!

Welcome to forums!

Know all about preferential payment from the given page:
"http://nybankruptcy.net/main/2009/what-is-a-preference-payment-and-why-should-you-care/".

Feel free to ask if you've further queries.

Sussane
Posted on: 20th Aug, 2012 09:24 pm
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