Installment Loan Before Bk7

[Tennesseestud]

My question involves bankruptcy in the state of: Ohio. So, we are trying to save up enough money for a chapter 7 filing. Of course things are getting tight since i no longer make the money I used to. I've thought about a sack d job but don't want to risk our BK. It's been suggested that I get a small installment loan like 400 bucks from advance America or that type of places and pay it back before filing however as I understand it this puts us at risk of messing up our ability to file as it would be considered preferential payment. Am I correct in thinking this would be a bad move?

[adjusterjack]

It could be a bad move depending on the circumstances and the timing. Read the following search results about preferential payments and fraudulent transfers:

https://duckduckgo.com/?q=giving+pre...&t=ffhp&ia=web

Then talk to a bankruptcy lawyer.

[pg1067]

a sack d job

Huh?

It's been suggested that I get a small installment loan like 400 bucks from advance America or that type of places and pay it back before filing however as I understand it this puts us at risk of messing up our ability to file as it would be considered preferential payment. Am I correct in thinking this would be a bad move?

The concept of preference payments is that, for some period of time before filing BK, you know you're headed there, so the bankruptcy trustee may be able to "claw back" those payments so that they can be applied for the benefit of all your creditors, rather than just one or a few creditors. Whether this is a good or bad move depends on facts not in your post, including why you want to take the loan and how long after paying it back you intend to file BK. I suggest you confer with a local BK attorney.

[adjusterjack]

a sack d job

Huh?

a second job, I think.

[Tennesseestud]

Huh?




The concept of preference payments is that, for some period of time before filing BK, you know you're headed there, so the bankruptcy trustee may be able to "claw back" those payments so that they can be applied for the benefit of all your creditors, rather than just one or a few creditors. Whether this is a good or bad move depends on facts not in your post, including why you want to take the loan and how long after paying it back you intend to file BK. I suggest you confer with a local BK attorney.

Because we are broke. But don't want want to make too much money and lose our chance of starting over with a second job