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Favoring Creditors/ Government Student Loan

I have recently (within the past 3 months) made some large payments on my Government Student Loan, and paid it off. If I file for brankruptcy, would this be considered `favoring a creditor?` Would th payments be reversed and distributed among all the creditors? I know they would be if it were any other creditor, but how about the government loan, since it`s different, and it wouldn`t have been erased in a bankruptcy? What if the payments were more than 3 months ago…

Thanks.

Posted from: Manitoba

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One Response to “Favoring Creditors/ Government Student Loan”

A licensed trustee said...

The underlying question, whenever you file, will be: where did the funds come from to pay off the student loans. If you borrowed from other sources to pay off the loan then it may n ot matter how much time has passed – the people uyou borrowed from may have grounds to oppose your bankruptcy.

The fact that you paid the money to the government makes no difference in this case. They are a creditor like any other when dealing with this kind of question.