Preferential Payment?

[tknj99]

Hi All,
I have an offer of 5% to my second mortgage on my primary residence for settlement with a counteroffer from the bank of 10% or $12000.. but they may take $10,000. Im wondering though, if they accept and I pay and settle the second mortgage, when I file sometime in August (timed to avoid tax return claim) will it be considered a preferential payment.. or does that only apply to unsecured debt?

Thanks

[SMinGA]

I'm fairly certain its only unsecured & family/friends. 3 month look back for unsecured, longer for f/f.

Though if they're discussing a settlement I imagine there is no equity and it IS unsecured. So that may make it a bit of a gray area. With the 3 month look back though, if you can settle now and hold on filing for 4-6 months I don't think it would be an issue. (And ultimately, with preferential payments the only impact directly on your case is that you end up with an asset case and may take longer to close. It becomes a matter between the trustee & creditor.)