I quit paying the credit cards last Nov., but continued paying for a storage unit (several hundred per month). It's paid month to month (no long term lease). Question: Will these payments to storage be seen as "preferential" in the eyes of a BK trustee? I am still not clear on whether the storage company is even considered a "creditor", for purposes of BK definitions. Thanks.
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My opinion is that a storage unit is similar to a secured item even if it is month to month; it is held in place with your belongings. If you don't pay, they own your stuff.First consult: You go now, no CH 7 for you. You spent entire buffet. 13 has a 95 percent payback. (Owwwch) On to next consult.... -
I think that preferential payments must be greater that 600, Is that right? Besides, what is the difference in doing that and not paying cc and keeping car and house current?Filed CH7 Feb 12 2010
341 March 18
Discharged...May 18
Awaiting closing...Comment
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An update: Sought legal advice. They said if I were indebted to the storage folks and wanted to discharge that debt in the BK, then the payments could be seen as preferential. Otherwise, nothing to worry about.Comment
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