priority debt

Definition of "priority debt"
  1. A debt that must be paid first in a bankruptcy case and includes obligations like alimony, child support, employee wages, and trustee and bankruptcy attorney fees
How to use "priority debt" in a sentence
  1. After liquidating his assets, his priority debt for child support was first to be paid.
  2. In her bankruptcy case, her priority debt for unpaid employee wages was settled in full.
  3. The Chapter 7 bankruptcy proceedings ensured payment of his priority debt, including trustees' fees.

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