The division of debt between secured and unsecured guides what reorganization can do for the business. Hidden traps in proceeds from collateral Misuse of the the proceeds of a secured creditor's collateral can create a non dischargeable debt for the individuals involved. Trust fund taxes are non dischargeable When an employer deducts taxes and social security contributions from employee wages, the employer becomes a fiduciary for that money which belongs to the employee.
Sales taxes are trust fund taxes in some jurisdictions, as well.
More on trust fund taxes Officers of insolvent corporations are fiduciaries for creditors No longer liable to ownership, corporate officers owe duties to creditors when a corporation becomes insolvent. More on officers as fiduciaries for creditors. Payments to insiders on old debts may be recoverable Repayments to relatives and business decision makers on their claims against the debtor can be recovered by the bankruptcy trustee under certain circumstances as preferences. More on preferences .