If you file for Chapter 13 bankruptcy, you will repay creditors, in part or in full, through your Chapter 13 plan over three to five years. You cannot decide the order in which your creditors are paid. Instead, bankruptcy law sets forth the order that your bankruptcy trustee must pay your debts. Usually
In bankruptcy, a preference payment occurs when you repay a creditor within a certain period of time before you file for bankruptcy. If you make a preference payment (also called a preferential transfer), your bankruptcy trustee may be able to get the money back from the person or business you paid – called “avoiding” the transfer.
Once you file for bankruptcy, you are required to meet with your trustee and creditors before the bankruptcy court can rule to discharge your debts. This meeting is called the 341 meeting, the meeting of creditors, or the creditors' meeting. The 341 meeting is the only time the trustee and creditors can ask you questions while you are under oath and on record.