Making preferential payments

You borrowed money from Grandma or your parents and ended up receiving some money and decided to pay them back. You could be causing trouble for them and your self if you end up filing bankruptcy. Ideally, that is what a family does for each other. If they have they money to help you when you are struggling and you are fairly responsible they lend you money. However, after I spoke with a Michigan bankrupcy attorney I found that this could cause problems for my family by paying them back. The problem arises for large payments you made 6 months or prior to filing bankruptcy. The creditors could have rights to that money and a bankruptcy trustee could go after the money from your family to pay the creditors. The debtor should be aware of the timeline of purchases or payments prior to filing bankruptcy.