During financial duress, people in debt will often borrow money from family or friends. This can lead to problems if a person repays the family member or friend then files for bankruptcy in the months or year following the repayment. Depending on the timing and debt repaid, these payments may be “preference payments” that can be recovered from the family member or friend during your bankruptcy and distributed to all of your creditors equally. If you want to pay back a family member or friend, there may be ways to do so without causing trouble for them later – Please be sure to consult your attorney.