preferential transfers

[librarycard]

What is the name of your state? Ohio
I've been reading 'Personal Bankruptcy for Dummies' and ran across this chapter on preferential transfers. I understand the concept..that if you pay a bill or repay a family loan, etc, right before bk, then the trustee can sue that person for the amount you paid and distribute that amount to your creditors. Anyone ever had this happen or even heard of it?

 

[Ladynred]

Oh yeah.. it DOES happen. I've read several accounts where a Trustee was suing family members to get back monies paid to them before the person filed for BK.