Quote Quoting llworking
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Even when the money paid was based on a loan that must be repaid, bankruptcy or not?
The pension loan needs to be repaid, NOT the loan to the insider.

OP borrowed money from a pension plan and then elected to use that money to pay a family member ergo there is a preference if the bk is filed within 1 year of the payment to the insider. The insider will be attacked by a Trustee. OP could step up to the plate and work a settlement with the Trustee to protect the insider but it is a recoverable preference one way or the other.

Des.