During a bankruptcy, all of the creditors are expected to be treated equally. As a result, if there is a belief that one creditor is receiving preferential treatment, this might lead to these payments being seized from the creditor so they can be more equally distributed.
Preferential Payments
The issue of preferential payments most often arises when you have a family member who you owe money to. You then pay money to your family member only to discover that they are treated as a creditor under bankruptcy law.…
If you have filed for some debt relief using Chapter 7 bankruptcy, you may soon learn about getting a trustee. This person is in charge of your bankruptcy case from the time you file it until the final discharge comes down. Most filers have limited contact with their trustee in person, but that doesn’t mean they don’t fill an important role with your case. For some guidance on what your bankruptcy trustee might want from you during the process, read on.…
Bankruptcy should only ever be used as a last resort way to get out of debt. It isn’t a problem solver for you every time you get into a pickle with your finances. If you are trying to file for bankruptcy every 7 years, this is a problem. You are using bankruptcy as a way of life, rather than a last-ditch effort. If you are struggling, it may not be bankruptcy that you need, you may instead need financial counseling.…
