Creditor Hierarchy: Who Gets Paid First?

If you are in debt to multiple creditors at one time and decide to file for bankruptcy, you may want to consider which creditors should get priority payment. In many cases, you may want to pay certain creditors back first, especially if you owe them a lot of money or have been in debt with them over an extended period of time. However, the majority of debtors do not have a choice as to who they pay back first and will instead be bound by the direction of the bankruptcy court in this regard.

If you are in debt and can no longer make your monthly payments, you may want to consider filing for bankruptcy in order to achieve debt forgiveness. At the Harmon Law Office, LLC, our Arizona debt forgiveness attorneys are dedicated to helping you take control of your financial situation once and for all. Contact us today at 480-829-0494 and take the first step to getting out of debt and on with your life.

Paying Back Creditors in Order

In a sense, a debtor loses the right to prioritize the payment of his or her debts when making the decision to file for bankruptcy. Though there may be some variations from case to case, the following is typically indicative of the order in which payments will be made:

• Debts to spouses and former spouses such as child support
• Administrative expenses to the trustee as well as any legal fees
• Wages to employees
• Any tax debts
• Any claims on personal injury or wrongful death claims

Contact Us

Do not delay seeking legal counsel if you are currently struggling with an unmanageable debt load. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, at 480-829-0494 and get out of debt so you can move on with your life.