Can I Give Priority To Certain Creditors I Owe Money To?

June 2, 2009

Yes, certain debts can be given priority when you file for bankruptcy in Arlington, Texas (or any state in the United States). In fact, the Bankruptcy Code has specific guidelines as to what debt falls under priority claims. Claims in a higher priority must be paid in full before claims with a lower priority receive payment.  For example, some priority claims can include:

  • Child support or spousal alimony
  • Administrative expenses of the bankruptcy
  • Unsecured post petition claims in an involuntary case
  • Wage claims of employees up to $10,000 per claim
  • Recent income, employment or gross receipts taxes
  • IRS taxes

Briefly, the Bankruptcy Code has established the order in which claims are paid from the bankruptcy estate: 

1)      Costs of administration 

2)      Priority claims

3)      General unsecured claims

Additionally, for an individual debtor, these kinds of claims are also non-dischargeable in Chapter 7. In other words, you will still owe on any past payments involving these types of debts.

For more information on how the bankruptcy trustee will determine priority claims and how to properly fill out your bankruptcy application, it is advisable to speak to an experienced Arlington bankruptcy attorney.

For a free bankruptcy consultation with an Arlington bankruptcy lawyer contact Fears | Nachawati Law Firm toll free at (866) 705-7584 or via e-mail at info@fnlawfirm.com.

More Blog Posts

CONTACT US

Use the form below to send us a note, call us at 214.890.0711 or chat with us live. We are eager to help with all your legal needs. Please keep in mind that any unsolicited information sent through our website cannot be treated as confidential. Contacting us through this site does not create a representation relationship with Fears | Nachawati.

Inquiry Type

  • General
  • Personal Injury
  • Immigration
  • Bankruptcy
  • Drug Litigation
  • Family Law

Locations

With offices in Texas, Florida and Colorado and attorneys licensed in Texas, Florida, Colorado, Arkansas and Oklahoma, Fears | Nachawati is dedicated to attaining the best possible solutions for our clients’ business and personal needs. We strive to be professionals who are creative, empathetic and reliable.

All Areas Served

We Can Help

Contact Fears Nachawati today

Free Consulation

Live Chat (Online Now)