May I Have Priority Creditors in a Chapter 7?

With the popularization of corporate restructurings in the media, many individuals may confuse aspects typically attributed to a Chapter 13 with a Chapter 7.  Many businesses choose to identify priority vendors, those without which their business cannot be sustained, and give these vendors priority treatment over others creditors.  This theory does not carry over in a Chapter 7.

A Chapter 7 is a straight liquidation in which a debtor liquidates his/her assets with the exception of certain key items like a homestead.  Many are misinformed about bankruptcy going in.  You do not have to be misinformed.  Consult an experienced Fears | Nachawati Law Firm attorney to separate fact from myth.