|PRIORITY: Attorney fees, taxes, and child support are three of the most common priority creditors and are usually the first to be paid in a Chapter 13 plan.|
|SECURED: Creditors that hold a lien on some property (deed of trust, car title, etc.) usually receive funds after priority creditors are paid. There are two main sub-categories of secured creditors: pre-petition mortgage arrears and other secured creditors.|
|UNSECURED: Creditors that do not hold rights to any collateral
property and are not priority are usually treated as general unsecured
creditors and are usually the last to receive any funds. Usually
unsecured creditors that have filed timely proofs of claim in a Chapter
13 case receive pro-rata the balance of funds available in the plan after
all other creditors have been paid and, therefore, often receive a very
small percentage of their claimed amounts. Unsecured creditors who
received proper notice of the Chapter 13 filing but who neglect to file
timely proofs of claim usually do not receive any disbursements.
*Unsecured creditors must file a timely proof of claim in order to receive any funds in a Chapter 13 case.
|POST-PETITION DEBTS: Sometimes it may be possible to include some debts incurred after the filing of a Chapter 13 petition. Specific amounts to be paid these creditors must be provided in the confirmed plan and usually a proof of claim must be filed by the creditors.|