Chapter 13 Priority Debts: Do I have to pay?

There are some debts that according to United States law must be paid in full over the course of a Chapter 13 plan of action.  Note: there are different plans that the court will issue you based on several factors,  the time of the plan can range but is usually 3 years but can be as long as 5 years.

The general rule is that priority debts that are unsecured by collateral and or a lien will jump to the front of the line.   According to US bankruptcy law priority debts of a person filing for Chapter 13 must be paid in full during the course of the Chapter 13 timeline.  Usually back taxes and or child support are the most common unsecured priority debts that based on US law must be paid during the course of the Chapter 13 bankruptcy timeline.  However there are many bylaws and special rule that apply to the above. Ch 13 bankruptcy law is an often difficult for a non lawyer to understand.  Thus an individual may not be able to fully appreciate and grasp the significance of the laws that may or may not apply to his particular situation.   It is important that you know your rights with regard to Chapter 13 bankruptcy filing.  If you have any questions feel free to contact us and as our Bankruptcy Lawyers and Downtown La Law Chapter 13 attorneys for help.  We offer Free Initial Consultation on any legal issue you have.  Contact us (855) DT LA LAW  or visit our Webpage here.

Here is a list of unsecured debts that can be considered Priority Debts by the bankruptcy court in your jurisdiction.  For more in depth analysis please contact our Bankruptcy Attorneys at (855) DTLALAW

• Contribution to employee benefit plans (such as 401K plans); if a person borrowed money based upon his or her 401 K plan
• Salaries, Commission, benefits, that are owed by an employer for work completed by his or her employee and or agent: (note this may also included outside non employee contractors
• deposits made for the purpose of a lease:  This is limited to $2,425
• Child Support 
• Alimony and other familial payments and court ordered contributions
• Taxes:  State and Federal taxes are usually Considered to be non dis-chargeable and thus priority debt is assumed here.
•  Debt resulting from payments due to Injury cause by DUI Drunk Driving incident
• Tariffs, duties, and import export payments that are owed to the federal government

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It is important to know that in a CH 13 filling there are some debts that are not extinguished and assume a priority possession in which the debt must be paid during the time that is given by the court for an individual to restructure himself and come out of Bankruptcy.

This is an often difficult area of the law.  If you have any issue understanding the legal ramifications of the law it is important that you seek legal advice from a trusted Chapter 13 Law Firm.  Feel free co contact us for a free consultation.  Call (855) DT LA LAW