What Is A Priority Debt?
A priority debt is a debt entitled to priority in payment in a bankruptcy case. A general listing of priority debts is given in 11 U.S.C. ¶ 507 of the Bankruptcy Code. Examples of priority debts are some taxes, wage claims of employees, debts related to goods and services provided to a debtor`s estate during the pendency of a bankruptcy case. In addition, alimony, maintenance or support of a spouse, former spouse, or child is considered a priority debt. If you have questions deciding which of your debts are entitled to priority status, you should consult an attorney.
Priority debts are your most important debts ones which cover your essential costs of living. Your priority debts include: Mortgage / Rent Secured loans County Court Judgments (CCJs) Magistrates Court fines Gas, water, electricity & telephone Child maintenance Council tax Tax VAT National Insurance TV licence Essential Hire Purchase goods (e.g. washing-machines, cars) Certain overpayments for benefits & Working / Child Tax Credit If you do not keep up on your priority debt repayments, you could: • face losing your home / eviction • have your gas/electricity/water supply cut off • have your possessions taken by bailiffs • face a jail sentence (but only in extreme circumstances) So if you are struggling to repay your priority debts, its essential that you get in touch as soon as possible, and explain your situation. Dont try to hide from your problems this will only make things worse. What should I do if Im struggling with priority debts? With most priority debts, one or more of the foll
A priority debt is a debt entitled to priority in payment in a bankruptcy case. A general listing of priority debts is given in 11 U.S.C. º 507 of the Bankruptcy Code. Examples of priority debts are some taxes, wage claims of employees, debts related to goods and services provided to a debtor`s estate during the pendency of a bankruptcy case. In addition, alimony, maintenance or support of a spouse, former spouse, or child is considered a priority debt. If you have questions deciding which of your debts are entitled to priority status, you should consult an attorney.
priority debt is a debt entitled to priority in payment in a bankruptcy case. A general listing of priority debts is given in 11 U.S.C. 507 of the Bankruptcy Code. Examples of priority debts are some taxes, wage claims of employees, debts related to goods and services provided to a debtor`s estate during the pendency of a bankruptcy case. In addition, alimony, maintenance or support of a spouse, former spouse, or child is considered a priority debt. If you have questions deciding which of your debts are entitled to priority status, you should consult an attorney.
