Is there a way to give one unsecured creditor priority over other unsecured creditors in a bankruptcy?
Unsecured creditors can get priority only if entitled to it by the letter of the bankruptcy laws. Creditors who may be entitled to priority generally include people who are owed child support, former employees who are owed wages, and the taxing authorities. Otherwise, all creditors must share and share alike.
Learn more about which debts get paid first in Chapter 7 Bankruptcy.
Secured creditors get different treatment in Chapter 7. To learn more, see our information on secured creditors and secured debt in Chapter 7.
Updated by: Kathleen Michon, J.D.