Will a Payoff of a Personal Loan be Treated as a Preferential Transfer
I currently have two loans, one to an outside creditor for student loans and another to my parents. If I make a large payment, greater than 10000, to my parents that makes me insolvent at the time, can other creditors void this as a preferential transfer if I happen to default on the student loans more than a year later. I have made large payments to my student loans in the past.
Thank you.
Re: Preferential Transfer
Unless you are in bankruptcy (or contemplating it) or you have a judgment against you, you're free to stiff people without regard to any priority.
Re: Preferential Transfer
How do courts find out if you were contemplating it? Would bankruptcy rules apply because these are student loans and I heard you cannot discharge them.
Thanks.
Re: Preferential Transfer
They don't find out that you are contemplating it. They find out that you DID subsequently file bankruptcy and they look back to see if you're gaming the filing.