While attempting to pay a creditor before you file bankruptcy may sound like a good idea, if you pay a creditor more than you are paying your other creditors, then that “favored” creditor may be required to give back that extra money so that it is shared among all the creditors.
The bankruptcy court will look at your debts and your rate of repayment. So it’s possible the creditor you were trying to keep out of your bankruptcy case may have to get involved. He or she may be asked by the court to return the money you paid for redistribution. Payments to favored creditors become an issue when they are discovered after your bankruptcy is filed, so be sure to disclose all creditors to your bankruptcy attorney.
If you will need to file a bankruptcy, before you pay anything to a relative or any other kind of creditor, schedule a free consultation with a King and King experienced bankruptcy attorney. Call us at 404-524-6400 or visit us online at www.kingandkingattorneys.com.