FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Payment before filing = preferential payment ?

I have 2 credit cards and the rest of my debts are on lines of credit and loans. It is worth paying off my cc debt before filing or will this be perceived as a preferential payment? I made a few small purchases with my cards and I am worried this could possibly have an effect on my discharge if I don’t pay them off before filing. This is like a catch 22.
Thanks..

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One Response to “Payment before filing = preferential payment ?”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

You will be better off to simply leave things as they are and file the bankruptcy. While there is a risk of a creditor opposing your discharge, as long as these purchases were not of significant value, you run less risk than if you attempt to selectively make payments to existing creditors. Keep in mind, if you simply file, the worst case scenario is a creditor may object to your discharge. If this happens the court typically requires payments that are of equivalent value of those purchases.