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Rank the Following Claims of an Organization Filing Chapter 7

Question 34

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Rank the following claims of an organization filing Chapter 7 bankruptcy from 1 to 4 based on the following classifications.Each classification may be used more than once.

Premises:

Responses:

Administrative expenses of the estate, such as trustee fees.

Stockholders' Claims

Interest on unsecured claims.

Unsecured Priority Claims

Claim by a supplier for goods delivered on account.

Secured Claims

Claim by employee for commissions earned in 90 days prior to filing bankruptcy petition, for the portion in excess of $11,725.

Unsecured Nonpriority Claims

Legal fees incurred after petitioning the court for Chapter 7.

Claims for wages that are less than $11,725 per individual, earned within 90 days of filing petition for bankruptcy.

Taxes owed to a government unit.

Claim by the accounting firm for the audit fee from the prior year-end audit completed two months prior to the bankruptcy filing.

Claims for employee benefit plan contributions that are less than $11,725 per individual and relating to services rendered within 180 days of bankruptcy filing.

Claims with a valid lien against assets of the entity.

Premises:

Administrative expenses of the estate, such as trustee fees.

Interest on unsecured claims.

Claim by a supplier for goods delivered on account.

Claim by employee for commissions earned in 90 days prior to filing bankruptcy petition, for the portion in excess of $11,725.

Legal fees incurred after petitioning the court for Chapter 7.

Claims for wages that are less than $11,725 per individual, earned within 90 days of filing petition for bankruptcy.

Taxes owed to a government unit.

Claim by the accounting firm for the audit fee from the prior year-end audit completed two months prior to the bankruptcy filing.

Claims for employee benefit plan contributions that are less than $11,725 per individual and relating to services rendered within 180 days of bankruptcy filing.

Claims with a valid lien against assets of the entity.

Responses:

Stockholders' Claims

Unsecured Priority Claims

Secured Claims

Unsecured Nonpriority Claims

Correct Answer:

Premises:

Responses:

Administrative expenses of the estate, such as trustee fees.

Interest on unsecured claims.

Claim by a supplier for goods delivered on account.

Claim by employee for commissions earned in 90 days prior to filing bankruptcy petition, for the portion in excess of $11,725.

Legal fees incurred after petitioning the court for Chapter 7.

Claims for wages that are less than $11,725 per individual, earned within 90 days of filing petition for bankruptcy.

Taxes owed to a government unit.

Claim by the accounting firm for the audit fee from the prior year-end audit completed two months prior to the bankruptcy filing.

Claims for employee benefit plan contributions that are less than $11,725 per individual and relating to services rendered within 180 days of bankruptcy filing.

Claims with a valid lien against assets of the entity.