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Some assets may have multiple liens placed upon them; in these cases, the first lien has priority over the second lien. Unsecured creditors are divided between preferred and non-preferred, as certain unclaimed creditors like employees and tax agencies are given priority.
The good news is that if you ? or the attorney you hire ? gets the paperwork right and the case moves through the court to the point where debt discharge is determined, the U.S. Bankruptcy Courts says that 99% of Chapter 7 cases succeed. Unfortunately, many don't make it that far and their petition is denied.
A total of 226,777 chapter 13 consumer cases were closed by dismissal or plan completion in 2020. Table 6 illustrates that 116,145 of these cases were dismissed. In 49 percent of the cases closed (110,632 cases), the debtors received a discharge after completing repayment plans, up from 43 percent in 2019.
While a priority claim is not secured by collateral, it is however treated with higher priority over other claims by Federal law. A priority claim is debt that is entitled to special treatment in the bankruptcy process and will get paid ahead of non-priority claims.
Among the top 30 unsecured creditors that Yellow owes are some of the industry's most recognized names. This includes railroads such as BNSF and Union Pacific, retail giants like Amazon and Home Depot, and leading equipment suppliers like Goodyear, Michelin, and DTNA (Daimler Trucks North America).
Unsecured Creditors, like credit card issuers, suppliers, and some cash advance companies (although this is changing), do not hold a lien on its debtor's property to assure payment of the debt if there is a default. The secured creditor holds priority on debt collection from the property on which it holds a lien.
Some of the most common types of unsecured creditors include credit card companies, utilities, landlords, hospitals and doctor's offices, and lenders that issue personal or student loans (though education loans carry a special exception that prevents them from being discharged).
What is a List of Creditors? When you file a voluntary petition under any bankruptcy chapter, you the debtor (or your attorney, if you use one) must prepare a List of Creditors and submit it to the Court. The List of Creditors is essentially a mailing list of creditors to whom you owe money.