Preferential Payment - Wait or keep moving forward?

[Refresh1]

We have a preferential payment to a creditor (Three $400 payments over 90 days) that we acknowledge, and the lawyer is aware of.

Lawyer said that moving forward with C7 is not an issue as the trustee will simply go after that money from the creditor.

We can wait till Oct 1. to file if need be, which would erase this preferential payment down to one $400 payment over 90 days. However we don't mind moving forward if the lawyer believes it won't present a roadblock.

Would you more seasoned veterans agree that while this presents an extra step to the trustee, it is not no big deal? Is it a big enough deal to wait it out, or should we keep moving forward?

(We also loose an average of $200/mth in income to our benefit for DMI that the lawyer doesn't necessarily need now, but is there on OCT 1 as well with March falling off the 6 months past pay.) Not sure if it helps to be even more negative than needed for the DMI or not. Is DMI black and white?

[despritfreya]

Personally (not my legal opinion), if you qualify now file now. You never know what the future will bring. Your attorney is correct. The preferential payments are not your concern. The Trustee will contact the creditor, make a demand and the creditor will either pay up or balk and then settle. Not your issue.

[keepmine]

It's up to the trustee to pursue a preference issue.
If filing now is in your best interest then do it and let the trustee and your creditor deal with the payment.

[PoorGrammyinBK7]

The only thing I can think of is that the case may take longer to close with the preferential payments out there for the trustee to go after.

[tcreegan]

file away

Hi Refresh,

Good advice so far, file away and let the trustee worry about the preferential payment. My gut says that it won't be worth the time and effort to go get it.

DMI is pretty much black and white, negative or positive. How positive you are matters very much, but negative is negative, doesn't really matter how much.

Good luck with your filing,

Tom in Colo

[Refresh1]

Thanks for the replies everyone.

I am learning so much on this forum, the perspectives are terrific. It great to know that the preferential payment is a mute issue if it is regarding a creditor. I suppose if someone had given money to someone they knew (family, Friend) this would be a larger issue given that their family or friend would be drug into it.

Thanks again!