Results 1 to 4 of 4
  1. #1
    Join Date
    Dec 2017
    Posts
    2

    Default 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.

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default 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.

  3. #3
    Join Date
    Dec 2017
    Posts
    2

    Default 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.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default 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.

    1. Sponsored Links
       

Similar Threads

  1. Property Division: Is a Personal Injury Annuity Payoff Separate Property
    By lawfacts in forum Divorce, Annulment and Separation
    Replies: 1
    Last Post: 01-19-2017, 04:30 PM
  2. Bankruptcy Issues: Fraud Transfer and Preferential Transfers
    By jenk12 in forum Bankruptcy Law
    Replies: 2
    Last Post: 03-02-2016, 05:46 PM
  3. Settling a Debt: Negotiating a Payoff for a Defaulted Car Loan
    By Clint123 in forum Debts and Collections
    Replies: 2
    Last Post: 05-19-2014, 03:11 PM
  4. Payoff: Loan Payoff After Default
    By dds2 in forum Cars and Dealerships
    Replies: 2
    Last Post: 03-20-2012, 08:30 AM
  5. Repossession: Purchase of a Car Without Transfer of Title or Loan Payoff, Seller Took the Car Back
    By jc1991 in forum Cars and Dealerships
    Replies: 3
    Last Post: 02-29-2012, 02:25 PM
 
 
Sponsored Links

Legal Help, Information and Resources