310.376.9864
Southern California Bankruptcy Attorney
Preference: The Debtor correctly listed in his paperwork that he had repaid within the past year $15,000 to a friend, and $10,000 to a family member. Repayments to “insiders” are considered preferences if the repayment was within the past year, and is a pre-bankruptcy DON’T.
The trustee will recover the $25,000 from either the debtor or the person to whom the repayment was made. In this case the debtor had already agreed to repay the money to the trustee, and turned over a check for $500 to the trustee on the spot at the hearing, with more payments to be made.
The trustee will use the $25,000 to pay back the debtor’s other creditors who weren’t as lucky to receive a preference.
Southern California Bankruptcy Attorney
A Debt Relief Agency
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
