Chat with us, powered by LiveChat
top of page

"Preferential Payment Bankruptcy"


A preferential payment is a payment made to a creditor that is given preference over other creditors in the event of bankruptcy. When a company files for bankruptcy, all creditors are supposed to be treated equally. However, sometimes a creditor will receive a preferential payment before the bankruptcy filing. This can happen when the debtor pays one creditor in full while leaving others unpaid. Preferential payments can also occur when the debtor pays one creditor more than it owes to another creditor.


Preferential payments give certain creditors an unfair advantage over others and can jeopardize the fairness of the bankruptcy process. When a debtor makes a preferential payment, it must notify all other creditors of the payment so they can object if they believe it is unfair. If a court finds that a preferential payment was made unfairly, it can order the debtor to repay the money to the affected creditors.




The Law Offices of Omar Zambrano has already helped thousands of people and businesses in the past to get out of debt and start over.



Our goal is to help you find a fresh start FAST!


Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706






Comments


Featured Posts
Recent Posts
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square
bottom of page