Define priority unsecured claims. Make the argument for or ...

[cookcarl]

Define priority unsecured claims. Make the argument for or against certain creditors having priority over others. Identify at least five examples of unsecured priority debts.
 
  What will be an ideal response?

Question 2

If the bankruptcy debtor converts his or her case to a Chapter 7 from a Chapter 13 or if the Bankruptcy Court dismisses the Chapter 13 case for whatever reason, a co-debtor will be exposed, once again, to a creditor's claim.
 
  Indicate whether the statement is true or false

[Ksanderson1296]

Answer to Question 1

Bankruptcy Code 11 U.S.C.  507 has established ten priority unsecured claims and requires each category of creditors to be paid in full before the next category may be considered for payment. Apriority claim is a debt that takes precedence over others because it is within the public interest to do so, or the money is owed to the government. An example of a priority claim would be child support or alimony payments.
Some examples of priority unsecured debts include:

1. Any domestic support obligations, such as alimony and child support
2. Administrative expenses
3. Unsecured claims for debts related to the debtor's regular business expenses that were incurred after an involuntary case was initiated and prior to either the appointment of a trustee or an order for relief from the bankruptcy court
4. Claims for payment of employees' wages, salaries, or commissions, including sick, vacation, and severance compensation
5. Unsecured claims for contributions to employee benefit plans, including medical and life insurance, must be paid within 180 days of the petition filing or close of business.
6. Claims of taxes or other governmental revenues

Answer to Question 2

TRUE