Under Chapter 7, creditors are paid in a certain order of priority. The highest-priority class comprises claims for
A)debts related to motor vehicles, household goods, and trade tools.
B)domestic support.
C)the debtor's equity in his or her residence.
D)student loans.

Question

Quizplus · Accepted Answer

Domestic support obligations, such as alimony and child support, are given the highest priority in Chapter 7 bankruptcy proceedings. This ensures that individuals who rely on these payments for their livelihood are not unduly affected by the debtor's financial insolvency.

Under Chapter 7, Creditors Are Paid in a Certain Order