bankruptcy preference claims
What happen if one pays a large sum of money to their mortgage company just days before filing bankruptcy?
What happen if one pays a large sum of money, say $100,000.00 to their mortgage company just days before filing bankruptcy? Would the other creditors be able to claim preference force the court to order the mortgage company to send the money paid back to the court? I am in Florida.
Usually a so-called preference payment to a secured creditor does not pose a problem. Usually. But Florida is different because of its extremely generous (unlimited, I believe) exemption for homestead equity. In Florida, unsecured creditors may well file objections claiming that you are hiding assets by making that preference payment right before filing bankruptcy.
Don’t do this without first seeking the advice of an experienced bankruptcy attorney in person, in Florida.
