Preferential Transfer

A transfer to a creditor before bankruptcy that enhances the creditor's position compared to bankruptcy without the transfer. Particular statutory rules determine if a transfer is preferential and might be avoided by a bankruptcy trustee.

Frequently Asked Questions

Our frequently asked questions also address Preferential Transfer:

What is the concern with transfers?

Bankruptcy attorneys and trustees are always asking about transfers of property, particularly in chapter 7 cases. Why do they care? A principal purpose of bankruptcy is to ensure a fair distribution amongst a debtor's several creditors. To that end, there are two kinds of pre-bankruptcy property transfers that can be a particular source of concern:

Read More ...

Can my wages be garnished by a creditor in another state?

North Carolina residents are fortunate to not have to routinely deal with wage garnishment. For most ordinary debts, such as credit cards, vehicle repossession deficiency balances, and private medical bills, North Carolina law does not permit wage garnishment as a means to collect the debt. However, North Carolinians sometimes find themselves having their wages garnished on order of another state's courts.

Read More ...

Blog Posts

We have discussed Preferential Transfer in the following posts on our bankruptcy blog:

Reversing Wages Garnishments and other Seizures in Bankruptcy

Mar 19, 2014

The assistance bankruptcy can offer to a person struggling with having his or her wages garnished is not limited to preventing in the immediate future. It's also possible, in some cases, to get the money back from the creditor who seized it. In considering whether this remedy is available, there are two sets of questions: (1) can the transfer be reversed and (2) does the money go back to the person who filed bankruptcy or does it go to the bankruptcy trustee.

Read More ...
Subscribe to RSS - Preferential Transfer