{"id":5236,"date":"2022-04-03T07:12:08","date_gmt":"2022-04-03T07:12:08","guid":{"rendered":"https:\/\/recoverylawgroup.com\/?p=5236"},"modified":"2025-08-13T05:21:41","modified_gmt":"2025-08-13T05:21:41","slug":"all-you-must-understand-about-priority-debts-under-chapter-7","status":"publish","type":"post","link":"https:\/\/recoverylawgroup.com\/staging_D\/all-you-must-understand-about-priority-debts-under-chapter-7\/","title":{"rendered":"All You Must Understand About Priority Debts Under Chapter 7"},"content":{"rendered":"<p><strong>Call: <\/strong><a href=\"tel:888-297-6203\"><strong>888-297-6203<\/strong><\/a><\/p>\n<p style=\"text-align: justify;\">Priority debts are always given first preference when repaying the debts. These include Employee Wages, domestic support obligations, child support etc. these must be paid off before the non-priority debts like medical bills and credit card balances.<\/p>\n<p><strong>\u00a0Disbursement of the funds by the trustee<\/strong><\/p>\n<p>The onus lies with the trustee to use your assets to pay off our debts. But most debtors who <a href=\"https:\/\/recoverylawgroup.com\/staging_D\/chapter-7-bankruptcy\/\">file for bankruptcy under chapter 7<\/a> have no assets which the trustee can sell off to pay the creditor. So, with whatever money that is available, the trustee will review the funds and disburse the funds accordingly.<\/p>\n<p>However, preference will be given to priority unsecured debts.<\/p>\n<p><strong>Repaying priority debts first is a boon for the debtor<\/strong><\/p>\n<p>This is because priority debts cannot be <a href=\"https:\/\/recoverylawgroup.com\/staging_D\/\">discharged in bankruptcy<\/a>. So, if you have to foreclose your property to pay off your debtors, the value from your property will be used to clear your debts and you will not need to pay them again separately. Moreover, debts like credit card bills and other non-priority debts will get discharged<\/p>\n<p><strong>Common Priority Debts under Chapter 7 include-<\/strong><\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $13,650 per employee wages, salary, and\/or commissions earned within 180 days of filing for bankruptcy<br \/>\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 An amount up to $13,650 contribution to Employee benefit plans due within 180 days of bankruptcy<br \/>\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $6,725 debts owed to farmers and fishermen<br \/>\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Alimony, support, and maintenance<br \/>\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Income Tax due within 3 years of filing<br \/>\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Claims for deaths or injury because of drunk driving<\/p>\n<p>For more details, get in touch with a <a href=\"https:\/\/recoverylawgroup.com\/staging_D\/\">good attorney firm<\/a> that can guide you through the process of bankruptcy filing. To get in touch with an experienced attorney &#8211; Call: <a href=\"tel:888-297-6203\">888-297-6203<\/a><\/p>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f79-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"79\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/staging_D\/wp-json\/wp\/v2\/posts\/5236#wpcf7-f79-o1\" method=\"post\" class=\"wpcf7-form init cf7mls-no-scroll cf7mls-no-moving-animation\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"79\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.6\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f79-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_recaptcha_response\" value=\"\" \/>\n<\/fieldset>\n<div class=\"uacf7-form-wrapper-container uacf7-form-79  \"><div class=\"full\">\n<div class=\"half\">\n<span class=\"wpcf7-form-control-wrap\" data-name=\"first-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"First Name\" value=\"\" type=\"text\" name=\"first-name\" \/><\/span>\n<\/div>\n<div class=\"half\">\n<span class=\"wpcf7-form-control-wrap\" data-name=\"last-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Last Name\" value=\"\" type=\"text\" name=\"last-name\" \/><\/span>\n<\/div>\n<div class=\"half\">\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone-no\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Phone Number\" value=\"\" type=\"text\" name=\"phone-no\" \/><\/span>\n<\/div>\n<div class=\"half\">\n<span class=\"wpcf7-form-control-wrap\" data-name=\"zip-code\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Zip Code\" value=\"\" type=\"text\" name=\"zip-code\" \/><\/span>\n<\/div>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"your-email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Email Address\" value=\"\" type=\"email\" name=\"your-email\" \/><\/span>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"your-message\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea wpcf7-validates-as-required\" id=\"condition-detail\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your Message\" name=\"your-message\"><\/textarea><\/span>\n<div class=\"fully\">\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Submit\" \/>\n<\/div>\n<\/div><\/div><div class=\"fusion-alert alert custom alert-custom fusion-alert-center wpcf7-response-output fusion-alert-capitalize awb-alert-native-link-color alert-dismissable awb-alert-close-boxed\" style=\"--awb-border-size:1px;--awb-border-top-left-radius:0px;--awb-border-top-right-radius:0px;--awb-border-bottom-left-radius:0px;--awb-border-bottom-right-radius:0px;\" role=\"alert\"><div class=\"fusion-alert-content-wrapper\"><span class=\"fusion-alert-content\"><\/span><\/div><button type=\"button\" class=\"close toggle-alert\" data-dismiss=\"alert\" aria-label=\"Close\">&times;<\/button><\/div>\n<\/form>\n<\/div>\n\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Call: 888-297-6203 Priority debts are always given first preference when repaying the debts. These include Employee Wages, domestic support obligations, child support etc. these must be paid off before the non-priority debts like medical bills and credit card balances. \u00a0Disbursement of the funds by the trustee The onus lies with the trustee to use your assets to pay off our debts. But most debtors who file for bankruptcy under chapter 7 have no assets which the trustee can sell off to pay the creditor. So, with whatever money that is available, the trustee will review the funds and  [&#8230;]<\/p>\n","protected":false},"author":4,"featured_media":5237,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,10,32,33,40],"tags":[80,147,22,70,21,129],"class_list":["post-5236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-after-bankruptcy","category-bankruptcy","category-chapter-7-bankruptcy","category-credit-and-bankruptcy","category-debt-settlement","tag-bankruptcy","tag-bankruptcy-attorney","tag-bankruptcy-attorney-firm","tag-bankruptcy-attorney-los-angeles","tag-bankruptcy-lawyers","tag-experienced-bankruptcy-lawyers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Comprehensive Guide to Priority Debts in Chapter 7 Bankruptcy<\/title>\n<meta name=\"description\" content=\"Most Chapter 7 bankruptcy debtors have no assets for sale. 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