§547 Preferential Transfers in Michigan

How 11 U.S.C. § 547 applies in Michigan — federal bankruptcy law, Michigan district data.

What §547 Preferential Transfers Does

If you paid a creditor more than $600 in the 90 days before filing (or 1 year for insider transfers), the trustee may "avoid" that payment as a preferential transfer and recover the money for distribution to all creditors equally. This rule protects the fundamental bankruptcy principle of equitable distribution.

Key points:

Michigan Bankruptcy Data (FJC)

124,909
Total filings
51.2%
Dismiss rate
24,460
Prior filers
30.6%
Prior discharge rate

Districts covered: E.D. Mich., W.D. Mich..

Apply This to Your Case

The rules above are federal — they apply identically in every state. What varies by state is exemptions (§522), median income thresholds (means test), and case-law interpretations of ambiguous terms. For a Michigan-specific answer, check the screener or consult a local attorney.

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Related Michigan Statutes

§547 Preferential Transfers in Other States