? on preferrential payment

[dtimo]

I have a credit card to which I owe $24,440.
The minimum payment on my July statement was $659.
On 7/28/10 I paid $660.
Does this mean that if I file before 10/21/10, I am on the hook for the whole balance?
This is California if that matters.

If true, If I stay current on my utility and phone bills through 10/21/10 while not paying cards, would that be considered preferential?

[keepmine]

A preference payment to an unsecured creditor has no affect on you. Just means the trustee has the option of demanding that the cc return the payment if you file bk within 90 days of the payment. The entire debt will be discharged.

You are allowed to pay normal bills like utilities and car loans, rent,etc. without running into a preference issue.

[keptdigging]

Preferences can make your case messier but they do not affect your discharge. They're quite benign compared to recent CC use, income issues, etc.

Usually the concern is if there's a preferential payment to a family member because no one wants the trustee reaching out to/suing family for money.

I just filed in CA with about $900 in "preferential" (I put it in quotes because I stopped paying at the same time I stopped paying the cards, there's just a longer lookback) payments to my mom. My attorney is hoping that the trustee won't pursue it.

Actually I should be asking the gurus here if the presumption of being preferential is rebuttable.

My attorney thinks the TT won't pursue it largely because it isn't worth the bother to open up an asset case for $900... at least here in high cost California.

[tcreegan]

utilities not preferential

Hello dtimo,

Does this mean that if I file before 10/21/10, I am on the hook for the whole balance? This is California if that matters. Since you are in CA; 'no way dude' The problem would be if you charged a big item then filed BK. Even then the cc only gets the $$ for the big ticket item, remainder of the balance still gets discharged.

If true, If I stay current on my utility and phone bills through 10/21/10 while not paying cards, would that be considered preferential? No, utilities/phone company are not creditors unless you have unpaid bills. It is best to stay current on utilities, especially if you are staying in their service area. If you close the acct, file BK, then try to get service again, they can request a hefty deposit.

Good luck w/ your filing,

Tom in Colo