Wednesday, July 31, 2013

When Filing Bankruptcy in Georgia Can I Pay Certain Creditors First?

In Bankruptcy Can I Can I Pay Certain Creditors First?
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The answer is simply no. In fact if you pay a creditor more than you are paying to your other creditors, then they may be required by your bankruptcy trustee to give back that extra money so that it is shared among all of your creditors, although this situation is very uncommon in the typical bankruptcy.  

In both Chapter 7 and Chapter 13 bankruptcy, your bankruptcy trustee will want to be sure you did not defraud your creditors by paying one more than another.  They will review your information for “insider” payments.  An “insider” is a relative, friend, or business associate.  Any payment or property transfer of over $600 in the year before your bankruptcy may be reversed.  This scenario very rarely arises.

Your Georgia bankruptcy attorneys at King and King will know what the standard procedure is in your local bankruptcy court. Call King and King for a free consultation today 404-524-6400.