10/15/2026
What Is A Preference Payment In A Bankruptcy Case?
In simple terms, a preference payment is paying certain people back while other creditors go unpaid. For example, if you stop paying a company like Capital One but continue paying back family members or friends you owe money to, that could become an issue. It often depends on the amount involved. If you’re talking about borrowing $100 here or there, that generally wouldn’t cause problems.
Learn more here: https://www.solomitalaw.com/what-is-a-preference-payment-in-bankruptcy/