Legal Question in Bankruptcy in California

My client is going to file bankruptcy & owes me money. If he pays me by check can the court make me pay it back if he owes money on a SBA loan and other vendors?


Asked on 3/03/10, 7:54 am

1 Answer from Attorneys
Asaph Abrams Law Office of Asaph Abrams

Pre-petition payments may be avoided; that is, the payment may be redistibuted among creditors. The applicable period prepetition is 90 days for arm's-length creditors; 1 year for insider creditors. Notwithstanding the discharging of a debt, a debtor may at a later point, voluntarily repay creditors.

Disclaimer: the above is not legal advice and should not be relied upon. Unilateral communications may be misconstrued as they do not address all facets, nuances, and particulars.

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Answered on 3/08/10, 8:33 am


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