It is extremely important to list all of your debts. If you fail to list a debt on your bankruptcy petition, it might not be discharged and you may be obligated to pay it unless the creditor actually knew there was a bankruptcy proceeding in time to file a claim. Even if you question the validity or amount of a particular debt, it is wise to list it since it will probably be discharged. You may indicate on the bankruptcy petition that the claim is disputed, or if the dollar amount of the debt is uncertain or contingent. Priority debts are generally those debts which are paid first if any of the debtor's funds can be distributed to creditors.
Administrative claims have first priority.
These include any expenses incurred by the trustee in the locating, recovery and sale of assets and the commission paid to the trustee. Wage claims also get priority status. For individuals, the most common type of priority debt owed is federal or state income tax. In addition, if the IRS or a state tax bureau has made a new assessment within eight months of the filing, the tax debt must be listed as a priority and will have to be paid in full despite filing for bankruptcy. Secured debts are obligations associated with specific items of property.