Order of Payment:

In case of a company, the order of payment under chapter 7 is, after the legal and the administrative expenses are paid, the payment is distributed among the creditors. Secured creditors will receive their collateral. If the company does not repay them in full, they will be grouped among the unsecured creditors. The unsecured creditors and the bondholders must file a claim petition to receive the money if the company is left with remaining money. Only after clearing the debts of the above persons, the remaining money, if any, shall be given to the stockholders and they have to realize the money by filing claim petitions.

Non-Dischargeable Debts:

The debts which does not cover under the bankruptcy code under chapter 7:

• Alimony and support payments
• Student loans
• Drunk driving
• Court ordered restitution and criminal fine.
• Debts incurred by fraud
• Damages for willful and malicious injury to someone else person or property
• Certain taxes and tax penalties, or debts incurred to pay non dischargeable taxes
• Debts of the prior case
• Property settlements in a divorce
• Cooperative housing fees and assessments
• Court fee
• Damages resulting from securities fraud

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