Car payment -is it preferential?

[Schz98143]

Hi everyone! My first post here...but i have been learning from all of you as i browse these forums. It has been a great source of knowledge and comfort to me and I thank all of you for your insight. We filed on Chapter 7 on 4-15. I am concerned about a car payment that was made within 90 days of our filing. I have decided to surrender the vehicle and and have not made any payments since February 8th. My attorney was aware that I had been paying but should this be noted that there was in fact a payment made to a creditor since it was over $600??? I am getting paranoid as I review our paperwork !
Thank you!

[newbie2]

I don't believe a payment to a secured creditor would be considered a preferential payment (people pay their mortgages, car payments etc all the time prior to filing). Since you are surrendering the vehicle perhaps ask your attorney if it should be on there somewhere though. Even if it is caught later it doesn't hurt you, the trustee just may want it back from the lender. Don't worry too much about it.

[oregonpilot]

welcome Schz....glad you found us!
I think that if the trustee decides that payment is a preferential payment he will go after it himself. Not something you will need to worry about.
I remember my trustee asking me if i had made any payments to anyone other than my usual things that i needed to pay each month.
You did note the "think" ..thats my disclosure. Good luck to you. AND we are here for you!!!

[daylate]

I agree with newbie2-payments on secured debt are not considered as preferential (unless made to a relative or other insider, I think)

[lrprn]

Newbie2 is correct. Secured loan payments are not preferential payments. You can stop worrying about this.

[Schz98143]

Thank for all of your replies! I will stop worrying ;-)
(In about 4 months!!!)