Preferential payments to creditors

[ColoradoBell]

I owe my sister money from her help in paying divorce attorneys during my divorce. That money is 'due on sale' of my home which the judge ordered sold.
But I paid her back for a vacation we took a few months ago...and I'm wondering if that could be interpreted as a preferential payoff ?

Also, can I continue to pay off the loan on a land installment contract that i have and list that as a monthly expense on the means test?

[momofthree]

But I paid her back for a vacation we took a few months ago...and I'm wondering if that could be interpreted as a preferential payoff ?

Yes.

[frogger]

Yes, yes, and yes.

[AngelinaCatHub]

Yes it is preferential. The land on the contract not only is preferential payment also, but just may end up becoming as asset that could be taken and sold if it's value is enough.

A lot depends on when you paid your sister off. I'm not sure what you mean as you implied you paid her off for a vacation or agreed to pay her off as to the sale of a house. Any profit in the house sale is also an asset and you cannot pass it around as you wish. Have you filed yet? 341 yet? Is the land "contract for Deed"? It is a secured obligation, you MIGHT be able to reaffirm this but since a contract for Deed is a pretty loose security, it might not fly. In any case it is an asset. Are you represented? You need a lawyer but to your question, it is yes on the sister. 'Hub