Preferential payments to creditors.
When you are preparing to file a Chapter 7 bankruptcy, your attorney will ask you if you paid any unsecured creditor more than $600.00 in the 90 days immediately preceding the filing or any family members any money in the last few years. These are considered preferential payments, that is you preferred to pay to debt over another. This is not always your fault. Often a creditor will tell you that “if you don’t make a payment today” the creditor will file an action in Court or attach your wages