Florida Debt Collections and Payment
Friday, October 19th, 2018 | The Cash Flow Group | Comments Off on Florida Debt Collections and Payment
Florida debt collections and payments – advice from The Cash Flow Group.
How to Avoid Preferential Debt Payments
Everyone has creditors they would rather pay back before others. This includes debts owed to family or friends. You should pay back these debts before bankruptcy. Then they are now considered preferential debt payments. This would allow the bankruptcy trustee to recover any payments made. Preferential payment helps to make payments distribute more even amongst all creditors.
How long must you wait in order to avoid a preferential debt payment?
What happens when a preferential debt payment occurs?
How to avoid preferential debt payments?
The easiest way is to simply avoid having payments fall within the designated periods. This means you may have to avoid filling for bankruptcy until these payments have cleared the preferential period. You should not do this with the intent of defrauding your other creditors or in an attempt to hide assets though, or else you may risk charges for your actions. One way to avoid this confusion is to stick to a regular schedule for payments, as to avoid the appearance that these payments were made purposefully to favor one party over another.
This article should not be taken as legal advice. Yet, the information provided should help you decide whether you have given or received a preferential payment. If you believe you may have an issue, we suggest you seek the advice of a lawyer.
Do you have questions about preferential payment? Feel free to contact us today! We look forward to hearing from you!