Bankruptcy priority and nonpriority

Priority is an important concept in the procedure of bankruptcy, Chapter 7 and chapter 13. In many cases bankruptcy full payment of debt, get one creditor priority during a believer, without priority, just partial payments or no payments at all. Different types of debts receive priority status in the event of bankruptcy. Chapter 7 GenerallyTo meaning of priority in bankruptcy Chapter 7, you must first understand how Chapter 7 on the whole. In a chapter 7 filing a bankruptcy trustee sell all your assets not freed. If none of these were for a debt is guaranteed, pays the trustee off the coast of this first secured debt. That the trustee is your debts guaranteed pay the trustee pays debt unsecured as much as possible. Priority is not important for debts guaranteed, but it becomes crucial for unsecured debts.Secured DebtsA debt is considered received debt, if debt associated with the collateral property. This means that you a loan and the promise that if you subscribe to pay the loan, then the creditor has the right called, take a piece of your property, the guarantee and sell the property to pay your debts. The most common types of debt, guaranteed are home loans mortgages and car loans. Not guaranteed debt was on the other hand, simple is connected to a loan without collateral. Common types of unsecured debt are debt card credit, personal loans and student loans.Chapter 7 PriorityBefore dividends of unsecured creditors, however, the trustee must determine what have priority over creditors and creditors are not a priority. After paying all guaranteed debt trustee takes the money of remaining applicable berinights priority of creditors. APRinciple preferential creditors, the trustee shall pay non-priority creditors, provided that it money left for everyone. Any debt not repaid considered legally released what simply means that the guilt is never far. Most cases of bankruptcy is not enough money to pay all debts the priority and it is only rarely links on money for not priority of debts DebtsPriority come debts.Priority in various forms, including the domestic support obligations than maintenance for children or keep tax as a tax on income tax sales and property taxes, fines and penalties as such as the ticket and if you are an employer due to employees for wage or pension money account contributions. There are other, more complex priority debts, as some farmers and fishermen, claims types or requests from death or injury by poisoning of the debtor, but such debt shall, that if they arise it is rare at best, to seek advice on practical bankruptcy attorney.Chapter 13As, priority status is less important in a case of Chapter 13, but priority can still affect the amount of money that received by a creditor. In case of Chapter 13 trustee sold not the debtor's assets. Instead, the debtor creates a debt reduction plan and in creditors accordance with this plan to repay. The plan will often provide reimbursement in a reduced amount. A chapter 13 plan is at least as much but acceptable if it provides creditors money as in Chapter 7 of the creditor would receive. In other words, you must run theoretical 7 chapter by one that includes a provision of priority over non-priority status.