Safely settling debt

[HHM]

The more fundamental question, why are you bothering to settle. Why are you potentially wasting that money?

[AngelinaCat]

And if you intend to file BK, this could be considered a 'preferential payment' and the trustee would then seek to 'Avoid the Transfer' and get that money back for the rest of the creditors that you ignored when making this payment.

[HHM]

And if you intend to file BK, this could be considered a 'preferential payment' and the trustee would then seek to 'Avoid the Transfer' and get that money back for the rest of the creditors that you ignored when making this payment.

True, but from the debtor's perspective, not a big deal (except for the fact that the debtor loses the benefit of having that money for other purposes).

[salsa]

In my case, I will likely have preferential payments as well. I set those up so they didn't garnish wages, which would be about double what I am agreeing to pay. It's a question I need to ask at my next couple consults...