Can I repay debts owed to relatives before filing for bankruptcy? | The Golden Law Group | Helping Residents & Businesses Get Financial Stability | (813) 413-8700 | https://www.brandonlawyer.com | 808 Oakfield Drive, Ste A, Brandon, Florida 33511 | 9040 Town Center Pkwy, Bradenton, Florida 34202
If you repay a friend or a family member money that you owed them before you file bankruptcy, that is considered a preference. When you do that the trustee can sue your friend or family member after the bankruptcy’s filed to recoup that money for the rest of your creditors. Typically the payment would have to be more than 1000 dollars that to happen, so we usually recommend that you try to avoid paying friends and family members monies that you owe them before you file.