In re Raejean S. Bonham dba World Plus
Bankruptcy No. F95-00897
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11 U.S.C. Section 507 - Priorities
Sec. 507. Priorities
(a) The following expenses and claims have priority in the following
order:
(1) First, administrative expenses allowed under section 503(b)
of this title, and any fees and charges assessed against the estate
under chapter 123 of title 28.
(2) Second, unsecured claims allowed under section 502(f) of
this title.
(3) Third, allowed unsecured claims, but only to the extent of
$4,000 for each individual or corporation, as the case may be,
earned within 90 days before the date of the filing of the petition
or the date of the cessation of the debtor's business, whichever
occurs first, for--
(A) wages, salaries, or commissions, including vacation,
severance, and sick leave pay earned by an individual; or
(B) sales commissions earned by an individual or by a
corporation with only 1 employee, acting as an independent
contractor in the sale of goods or services for the debtor in
the ordinary course of the debtor's business if, and only if,
during the 12 months preceding that date, at least 75 percent of
the amount that the individual or corporation earned by acting
as an independent contractor in the sale of goods or services
was earned from the debtor; \1\
\1\ So in original. The semicolon probably should be a period.
(4) Fourth, allowed unsecured claims for contributions to an
employee benefit plan--
(A) arising from services rendered within 180 days before
the date of the filing of the petition or the date of the
cessation of the debtor's business, whichever occurs first; but
only
(B) for each such plan, to the extent of--
(i) the number of employees covered by each such plan
multiplied by $4,000; less
(ii) the aggregate amount paid to such employees under
paragraph (3) of this subsection, plus the aggregate amount
paid by the estate on behalf of such employees to any other
employee benefit plan.
(5) Fifth, allowed unsecured claims of persons--
(A) engaged in the production or raising of grain, as
defined in section 557(b) of this title, against a debtor who
owns or operates a grain storage facility, as defined in section
557(b) of this title, for grain or the proceeds of grain, or
(B) engaged as a United States fisherman against a debtor
who has acquired fish or fish produce from a fisherman through a
sale or conversion, and who is engaged in operating a fish
produce storage or processing facility-- but only to the extent of
$4,000 for each such individual.
(6) Sixth, allowed unsecured claims of individuals, to the
extent of $1,800 for each such individual, arising from the deposit,
before the commencement of the case, of money in connection with the
purchase, lease, or rental of property, or the purchase of services,
for the personal, family, or household use of such individuals, that
were not delivered or provided.
(7) Seventh, allowed claims for debts to a spouse, former
spouse, or child of the debtor, for alimony to, maintenance for, or
support of such spouse or child, in connection with a separation
agreement, divorce decree or other order of a court of record,
determination made in accordance with State or territorial law by a
governmental unit, or property settlement agreement, but not to the
extent that such debt--
(A) is assigned to another entity, voluntarily, by operation
of law, or otherwise; or
(B) includes a liability designated as alimony, maintenance,
or support, unless such liability is actually in the nature of
alimony, maintenance or support.
(8) Eighth, allowed unsecured claims of governmental units, only
to the extent that such claims are for--
(A) a tax on or measured by income or gross receipts--
(i) for a taxable year ending on or before the date of
the filing of the petition for which a return, if required,
is last due, including extensions, after three years before
the date of the filing of the petition;
(ii) assessed within 240 days, plus any time plus 30
days during which an offer in compromise with respect to
such tax that was made within 240 days after such assessment
was pending, before the date of the filing of the petition;
or
(iii) other than a tax of a kind specified in section
523(a)(1)(B) or 523(a)(1)(C) of this title, not assessed
before, but assessable, under applicable law or by
agreement, after, the commencement of the case;
(B) a property tax assessed before the commencement of the
case and last payable without penalty after one year before the
date of the filing of the petition;
(C) a tax required to be collected or withheld and for which
the debtor is liable in whatever capacity;
(D) an employment tax on a wage, salary, or commission of a
kind specified in paragraph (3) of this subsection earned from
the debtor before the date of the filing of the petition,
whether or not actually paid before such date, for which a
return is last due, under applicable law or under any extension,
after three years before the date of the filing of the petition;
(E) an excise tax on--
(i) a transaction occurring before the date of the
filing of the petition for which a return, if required, is
last due, under applicable law or under any extension, after
three years before the date of the filing of the petition;
or
(ii) if a return is not required, a transaction
occurring during the three years immediately preceding the
date of the filing of the petition;
(F) a customs duty arising out of the importation of
merchandise--
(i) entered for consumption within one year before the
date of the filing of the petition;
(ii) covered by an entry liquidated or reliquidated
within one year before the date of the filing of the
petition; or
(iii) entered for consumption within four years before
the date of the filing of the petition but unliquidated on
such date, if the Secretary of the Treasury certifies that
failure to liquidate such entry was due to an investigation
pending on such date into assessment of antidumping or
countervailing duties or fraud, or if information needed for
the proper appraisement or classification of such
merchandise was not available to the appropriate customs
officer before such date; or
(G) a penalty related to a claim of a kind specified in this
paragraph and in compensation for actual pecuniary loss.
(9) Ninth, allowed unsecured claims based upon any commitment by
the debtor to a Federal depository institutions regulatory agency
(or predecessor to such agency) to maintain the capital of an
insured depository institution.
(b) If the trustee, under section 362, 363, or 364 of this title,
provides adequate protection of the interest of a holder of a claim
secured by a lien on property of the debtor and if, notwithstanding such
protection, such creditor has a claim allowable under subsection (a)(1)
of this section arising from the stay of action against such property
under section 362 of this title, from the use, sale, or lease of such
property under section 363 of this title, or from the granting of a lien
under section 364(d) of this title, then such creditor's claim under
such subsection shall have priority over every other claim allowable
under such subsection.
(c) For the purpose of subsection (a) of this section, a claim of a
governmental unit arising from an erroneous refund or credit of a tax
has the same priority as a claim for the tax to which such refund or
credit relates.
(d) An entity that is subrogated to the rights of a holder of a
claim of a kind specified in subsection (a)(3), (a)(4), (a)(5), (a)(6),
(a)(7), (a)(8), or (a)(9) of this section is not subrogated to the right
of the holder of such claim to priority under such subsection.
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2583; Pub. L. 98-353, title III,
Secs. 350, 449, July 10, 1984, 98 Stat. 358, 374; Pub. L. 101-647, title
XXV, Sec. 2522(d), Nov. 29, 1990, 104 Stat. 4867; Pub. L. 103-394, title
I, Sec. 108(c), title II, Sec. 207, title III, Sec. 304(c), title V,
Sec. 501(b)(3), (d)(11), Oct. 22, 1994, 108 Stat. 4112, 4123, 4132,
4142, 4145.)
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