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