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Can I repay debts owed to relatives before filing Chapter 7 Bankruptcy so that I do not have to list them on my bankruptcy petition?

April 26, 2017Bankruptcy chapter 7 debts filing list petition relatives repay

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Can I repay debts owed to relatives before filing Chapter 7 Bankruptcy so that I do not have to list them on my bankruptcy petition?

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No. Payments made to relatives within 12 months (one year) before filing bankruptcy are considered “preferences”. The trustee may have the right to pursue the relative to recover the preference, and then divide the money equally among all creditors. You could then be charged with bankruptcy fraud.