Can I Repay a Personal Loan to a Friend or Family Member before Filing for Chapter 7 Bankruptcy?

Repaying personal loans prior to filing for bankruptcy can result in the friend or family-member to whom you have repaid the debt being sued for recovery of the funds by the Chapter 7 Trustee in your bankruptcy case. However, there are options if you have already made such a repayment and need to file for bankruptcy for unrelated reasons.

To read more about so-called “insider” preference payments and the repayment of personal loans before, during, or after a bankruptcy, click here to read our full article on this topic on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact me at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

One response to “Can I Repay a Personal Loan to a Friend or Family Member before Filing for Chapter 7 Bankruptcy?

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