Will I be in Trouble if I Accidentally Made Preferential Payments Before Filing for Bankruptcy?

You will not get into trouble if you accidentally made preferential payments before filing for bankruptcy. Bankruptcy trustees have the ability to bring preferential payments back into the estate in order to pay back your creditors. The bankruptcy paperwork will ask you if you've made any preferential payments to any insiders in the last 12 months, and this is when you'll disclose that information. If you're honest about this information, you won't be in trouble with the bankruptcy trustee. Watch the video to learn why.