Question

In: Finance

Which creditors have priority to recover in New York Chapter 7 bankruptcy?

Which creditors have priority to recover in New York Chapter 7 bankruptcy?

Solutions

Expert Solution

Priority debts that might come up in consumer bankruptcies include (as of April 1, 2019):

  • wages, salaries, and commissions owed by an employer up to $13,650 per person earned within 180 days of your bankruptcy filing
  • contributions to your employees’ benefit plans rendered within 180 days of your bankruptcy filing up to $13,650
  • debts of up to $6,725 owed to certain farmers and fishermen
  • up to $3,025 in deposits made for the purchase, lease, or rental of property or services for personal, family, or household use that were not delivered or provided
  • alimony, maintenance, or support
  • income taxes that became due within the three-year period before the bankruptcy filing date and taxes that were collected or withheld from an employee (trust fund taxes); also, customs, duties, and penalties owing to federal, state, and local governmental units, and
  • claims for death or personal injury (not property damage) that came about because of your driving under the influence of alcohol or drugs.

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