Question Is paying for reimbursed work expenses considered preferential payment?

[blodg]

I have not filed or even consulted an atty but I'll need to file in the near future. My cards have been maxed out for some time. I have considerable travel expenses for work; $2k-$4k/mo. Lately I've had others pay for my hotels and flights and then submit the bills for reimbursement. When I get paid I reimburse those who paid my travel expenses. I'm not yet late on any of my $70k in cards but will the fact I only pay minimum payments make the friend/family reimbursements preferential payments? These expenses are not going away. Is there a better way to handle them?

[justbroke]

Very good question. I think that expense reimbursement to you would not be a preference. However, when you borrowed money from your friends/family, that created an unsecured debt.
Your friends/family are technically unsecured creditors who have extended credit to you.

If you pay them back, regardless of whether they are covering expenses, it could be considered a avoidable as an insider preference. I mean, I can see a Trustee arguing that point. As to whether it's a preference, I don't see where in the code that it wouldn't otherwise be some sort of preference.

This would be a great question for several attorneys as you interview them during your free consultation. The question would be whether this falls under one of the exceptions on Preferences. There is at least one exception for business related debt in the ordinary course of business.