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All liens are not treated equally according to Chapter 7 regulations.
Tax liens owed to governmental authorities are given a preference in
payment. In terms of the Code, this preference is known as priority
status, and entitles holders of priority to status to first payment upon
secured debts. Examples of priority liens include tax liens, statutory
hospital liens, judgment liens for restitution based on crimes committed
against federal or state governments. In addition, secondary priority
status includes most common secured debts, which are entitled to payment
from the estate before general unsecured creditors.
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