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"Preferential Payments Bankruptcy"


In aPreferential Payments bankruptcy, certain creditors are given priority over others when it comes to receiving payments. This can happen when the debtor has made payments to one creditor that are significantly higher than what was paid to other creditors within a certain period of time before filing for bankruptcy. In some cases, the preferential payments may be completely wiped out, while in others the court may order that they be partially repaid. Either way, this type of bankruptcy can be complex and difficult to navigate, so it's important to seek professional help if you're considering this option.



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