Tag Archives: Chapter 13

Who Gets Paid First in Bankruptcy?

Morris County Bankruptcy Attorney Describes the Process People who file bankruptcy often owe money to different entities as creditors. When many creditors are involved, how do they decide who gets reimbursed first as the debtor begins to pay off his or her debts? This question is at the heart of recent legal entanglements for Sonja Morgan, star of the reality show Real Housewives of New York. Currently, many of her creditors are attempting to take possession of her home as she fights to keep it. One of her creditors, Hannibal Inc., wants to liquidate all her assets, repossess her home and take its share of her debts before her other creditors do. Morgan says that she has her own plan in place to relieve her debts. A judge is currently reviewing her proposal, which argues that funds from selling her French home, and an expected payment from her ex-husband, can…
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