Minneapolis, MN asked in Bankruptcy for Minnesota

Q: Is it possible to get a $1600 payment to a creditor returned to us after filing a chapter 13 bankruptcy?

We filed a chapter 13 back on 10-15-18. Previous to this, we made a rather large payment to one of our creditors in the amount of $1600. The creditor is saying we can't get this payment back because of some bankruptcy code, however, our attorney told us as long as the payment was over $600 and made within 90 days of filing, we could get these payments back. Is this true?

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1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: The Trustee will recover the payment as a preference but it will likely remain with the trustee unless the plan is 100% repayment.

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