 TITLE: Understanding Priority and Non-Priority Debt in Bankruptcy CONTENT: How Do Priority Unsecured Debts Work in Chapter 13 and Chapter 7 Bankruptcy?\n----------------------------------------------------------------------------\nIn a Chapter 7 bankruptcy, if there are sufficient funds to repay any debts, creditors with stronger claims receive payment ahead of those with weaker claims. In a Chapter 13 bankruptcy, creditors with stronger claims may receive a higher percentage of what's owed them than those with weaker claims.\nWhen the bankruptcy filer's assets are sold off in a Chapter 7 bankruptcy, proceeds must be put toward priority debts before other creditors receive any payment. When a debt repayment plan is devised in a Chapter 13 bankruptcy, creditors with priority debts typically must be paid in full, while those with non-priority debts may have to accept partial payment.\nWhether you file for Chapter 7 or Chapter 13 bankruptcy, when the process concludes and you've fulfilled the court's requirements, most of the debts that remain unpaid are considered discharged: You are no longer responsible for them, and creditors may no longer bring suit against you or otherwise attempt to collect them. Priority debts cannot be discharged, however, and you'll remain responsible for repaying them even after other debts have been set aside. END