Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
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That is a good question.
It really depends on teh creditor, but the answer is Yes.
They have to agree to settle for less, but it happens often.
For example, if you get a judgment for $4,000.00 and call the creditor and say "I know it is for $4k, but if I give you $2,500.00 this week, can that be a final settlement on the account?"
Quite often they will say yes to that.
The preference period of 90 days applies to all creditors who received $600.00 or more per creditor. So if 4 creditors got $1,000.00 each, yes the Trustee is likely to do that. Now if 10 creditors got $400 each, then the Trustee cannot go after that money.
If you have any other questions, please let me know.
I will be off and on throughout the day and evening, so I will check back periodically to see if you have further questions.
Good luck, I know frivolous lawsuits can be awfully annoying and stressful, so I hope it works out for you.
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i plan to reaffirm a few debts that were my personal debts not my husband's business debts that i guaranteed. i therefore think a seven should be possible since we owe the small business administration over a million dollars and have no assets. (we were 9/11 victims and took out loans that they promised would become grants but never did.) personally i owe about 20,000 and i've been current on all my debts. i am also repaying non-government business debts.
should i care if the trustee does a clawback? it's such a small amount of money it seems hardly worth their time.
No, a clawback does not affect you at all, so it is ok.
Basically they will take the money back and then spread it evenly amongst the other creditors. This can tend to help you at times because it can take money from a unsecured creditor and redistribute it to a priority creditor, like taxes, so that you get credit for the money.
i was planning to pay some past due sales tax from the company before filing. i would have to pay it anyway. i assume that tax is an amount that is not subject to clawback.