- Bankruptcy and Foreclosure
- Consumer Bankruptcy Lawyers
- Home and Property
- Transferring Property to Family Members
An example will illustrate this: You owe a large sum of money to a wealthy uncle, because he helped pay for your much needed medical treatment. If you repay more than $600 of that debt, within the year before you file for bankruptcy, it could be recovered by the Chapter 7 trustee. This is because it is a “voidable preference.” That is, it is a preference that your uncle is able to recover more money that he would if he was one of your creditors and had to divide it accordingly. Small gifts are not voidable preferences (Small means that the total less than $200 in the past year).