Paying More Than $600 to an creditor before BK

[unclerico]

If I paid private school tuition ($705.00)/mo prior to filing is that considered a creditor?

[2Bshinyandnew]

If the tuition payment amount was an amount that you would normally have paid to the school I wouldn't be worried about it. In any case, the 'more than $600' rule really only affects the debtor if the creditor is a friend or family member. Of course, check with an attorney.

[justbroke]

Worse case, even if they are considered to be a creditor, they are a different "class" of creditor and you're allowed to treat classes differently. You just can't treat creditor in the same class... differently.

Preferential payments occur when a "class" of creditor receives more than they would have, in a Bankruptcy liquidation. I see no issues with education.

[unclerico]

Thank you for the info!