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Most Orlando bankruptcy lawyers who have been doing this kind of work for any amount of time know that they have to have options for bankruptcy clients in order to help them pay. As mentioned above, that often means flat fees and payment plans that ease the pain of yet another bill.
But things are even more clearly defined in chapter 7 bankruptcy cases. There is an order of priority for how bills will be paid and to whom.
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Call 855-Kramer-Now (855-572-6376).
An Orlando Bankruptcy Lawyer Explains the Order of Priority
The order of priority is actually fairly simple. All it does is break down the people you owe money to into different categories so that certain types of debts will be paid first out of the available money that you have.
Bankruptcy Administration Fees. In order to file for bankruptcy, you need to pay for things like witness fees, trustee’s fees, referee’s fees, clerk’s fees… and a reasonable attorney’s fee. Because of this, any money that you have will first go to paying off these debts. Basically, your bankruptcy attorney is protected no matter what because they are one of the first people who gets paid under the law.
Secured creditors. Are you financing your car? Do you have a mortgage on your house? The second tier of people who get paid off fall into those categories for chapter 7 bankruptcy. It should be noted, though, that courts often try to pay these kinds of creditors at the same time that attorneys get their money in an attempt to avoid conflict.
Unsecured debts. This is a wide range of debts that can include everything from taxes to credit card payments to alimony. Technically, credit cards actually come last because everything has priority over them.
Orlando Bankruptcy Lawyer: Know the Order of Priority
Knowing the order of priority can be quite valuable if there is a particular debt that you want to make sure gets paid off. In the same way that we ask for payment before filing, you can work to pay down that specific debt before declaring bankruptcy. All of this is complicated and may have legal ramifications, however, so your best bet before doing anything is to speak with an Orlando bankruptcy lawyer.
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