Yes, but you have to make sure you disclose the payment on your Statement of Financial Affairs. The forms ask whether you’ve paid any creditor more than a total of $600 in the 90 days before filing your case to make sure that all creditors are treated fairly. Most of the time, the only payments of more than $600 over a 3 month time period are mortgage payments and car payments being made to secured creditors.
If an unsecured creditor received on or more payments totaling $600 or more in the 90 days before a Chapter 7 bankruptcy case is filed, the trustee can “avoid” the payment and get the money back from the creditor so it can be shared among all creditors. This doesn’t affect you, as your liability on the debt will be eliminated when the discharge is entered.
If you paid a family member or friend in the 12 months before filing your case, make sure you check out this article for an explanation of what can happen as a result.
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