Preferential payments?

[owoody]

I was reading a post today that said if you pay some Medical bills that total over $600.00 before you file they might consider it Preferential..
Not only have we been planning for our Bk,but now My Hubby has cancer and will need to pay our $2000.00 year deductible so the Insurance will take care of the rest. I can`t just throw it on the Bk later cause We are going to need these People and their services for a LONG TIME. We now have to skip our house payment to get the money .
Will they consider that P.P?.....How could they when Life is more Important than some Damn Creditors.

[MSbklawyer]

Ongoing insurance premiums are not a debt. The preferences section of the code (§ 547) defines a preference as a payment (and I'm paraphrasing here)

1. To a creditor;

2. For an antecedent debt;

3. While the debtor was insolvent or within 90 days prior to filing (1 year prior to filing if the creditor is a relative or other "insider")

4. That causes the creditor to receive more than it would otherwise receive in the bankruptcy.

If any one of these elements is not met, it's not a preference. Under your scenario, the trustee would have a helluva time proving 1,2 and 4.

So no, you don't have a preference problem with your ongoing insurance payments.

[despritfreya]

To meet your deductible and not worry about a Trustee recovering the payment from the medical care provider as a preference:

1. If you owe the doctor for services rendered previously then pay it and wait 91 days to file bk. If the payment is outside of the 90 day window it is not a recoverable preference.

2. If you are paying the doctor at the time you obtain services there is no issue as such was a contemporaneous exchange for value.

My thoughts and prayers are with you as you deal with this major health issue.

Des.

[owoody]

Thank You both for answering me......I was really hoping that One of you two would answer so I would know for sure and I was Lucky enough to get Both of you.I use to be on here alot and really trust your opinions. Thanks again