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"Preferential Payments Bankruptcy"


Under the bankruptcy code, a debtor is allowed to favor some creditors over others by making "preferential payments."  These are payments made to certain creditors within 90 days before the debtor files for bankruptcy. The problem with preferential payments is that they can leave other creditors high and dry.


If a debtor makes a payment to one creditor that is more than what is owed to another creditor, the court may declare the payment "preferential" and order the debtor to repay the money to the other creditors. This can happen even if the debtor had no intention of favoring one creditor over another.


Preferential payments can be clawed back by the bankruptcy trustee and used to pay off other creditors. This can cause serious financial hardship for the debtor, who may have already spent the money on necessary expenses.




The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of the 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







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