Question about payments

[tammygirl1]

Hello, out of curiosity, do you know when they ask if you have made a $600 payment...is it accumilitive over the last 3 months or individual payment? I had a loan that was auto withdrawn at $340 each month up to this last month before I could have them stop withdrawing it.
Thanks in advance!

[Exployer1234]

It is for a payment that is 600 dollars or more at one time. My trustee asked if anyone made any payments over 1000 dollars. I think it varies from state to state on how much, but the min is 600 I believe.

[syburr]

Hello, out of curiosity, do you know when they ask if you have made a $600 payment...is it accumilitive over the last 3 months or individual payment? I had a loan that was auto withdrawn at $340 each month up to this last month before I could have them stop withdrawing it.
Thanks in advance!

Is is it a $600 payment within the last three months or the last year/tweleve months?

Thanks.

[Exployer1234]

My trustee asked if there had been any payments within the last year/ 12 months.

He asked if I bought any property within the last 2 years.

[rpertusio]

My understanding is that the $600 is cumulative over 90 days prior to filing. But, if you list it (or your lawyer lists it)... it's not like you'll be forced to fork over any $$ to other creditors. It won't affect YOU personally. Technically the payment to your auto loan could be reversed and given to other creditors.

I posted a more detailed reply in this thread if you're interested:

http://www.bkforum.com/showthread.php?t=57089

[lrprn]

Remember that the $600 limit over the 90 days before filing is only for unsecured creditors that were paid when other unsecured creditors were not. Payments over $600 within 90 days of to secured creditors (mortgage, car, etc) are fine.

Keep in mind that making a preferential payment doesn't affect you, the filer, at all. The trustee just goes after the unsecured creditor to return all the money paid to them to distribute equally among all your other unsecured creditors.

The one time for you to worry about preferential payments is if the unsecured creditor is a family member or personal or work friend. Still doesn't affect your bk case, but can certainly impact your relationship when your trustee demands the return of all the money you gave them and they have no legal recourse but to return it to the trustee in full.