Call Today 251.241.5234
The Firm That Is There for You When You Need Us Most

Schedule E : Priority Debts

Schedule E requires the debtor to list all debts that will be paid as a priority claim. A priority claim will be paid by the bankruptcy trustee ahead of other claims. Priority claims are not relevant in Chapter 7 cases with no assets. In Chapter 13 cases, the regular stream of payments provided by the debtor under the Chapter 13 Plan provides funding, or "assets," that require a determination by the Trustee as to each debt's legal priority in the case.

A "priority" tax claim in a Chapter 7 and Chapter 13 case must be paid ahead of general unsecured creditors.

It is important for the Debtor and creditors to monitor the filing of the Proof of Claim forms by creditors in asset Chapter 7 and in Chapter 13 cases. Sometimes, a creditor will file a claim and designate that the claim is a "priority" claim instead of a secured or general unsecured claim. In that instance, the debtor must file an objection to the claim and ask the Court to assign the appropriate status (priority, secured, or general unsecured).

8 Reasons to Place

Your Trust in Us
  • Over 20 Years of Experience

  • Responses Within 24 Hours

  • Technologically-Savvy Law Firm

  • 24/7 Access to Case Updates

  • Saturday Appointments in Robertsdale or Mobile

  • Solely Focused on Consumer & Business Bankruptcy Law

  • Free & Confidential
    Case Consultations

  • Proud Member of the American Bankruptcy Institute