[Topsya]

Hey guys!

Could you please help me with the following question:

Which of the following types of claims would be paid first in the distribution of bankruptcy estate under the liquidation provisions of Chapter 7 of the Federal Bankruptcy Code if the petition was filed July 15, 20X3?

a. A secured debt properly perfected on March 20, 20X3

b. Inventory purchased and delivered August 1, 20X3

c. Employee wages due April 30, 20X3

d. Federal Tax Lien filed June 30, 20X3

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

@h0wdyus this came from Lambers book

It's probably an error. Not the only one in that book….

You know, when you are saying: “The inventory creditor can be treated as a GAP creditor. They have the 3 rd ranking after Secured Creditor and Administrative costs.”

and what about Domestic Obligations, such as alimony and child support?

correct me if I'm wrong, but the priorities are the following:

1. secured creditor to the extent of the proceeds of the collateral

2. Domestic Obligations: alimony, child suport

2. Admin Costs in the bankruptcy proceedings

4. GAP Creditors

etc….

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[h0wdyus]

@Topsya

That is the correct priority. Yaeger showed Admin and Domestic support obligation in one in his notes.. In the lecture he did mention I believe that alimony comes first. Wiley clearly states alimony and child support before Admin cost.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[h0wdyus]

@Topsya

That is the correct priority. Yaeger showed Admin and Domestic support obligation in one in his notes.. In the lecture he did mention I believe that alimony comes first. Wiley clearly states alimony and child support before Admin cost.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Topsya]

ok, cool

just wanted to make sure that it comes first

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

ok, cool

just wanted to make sure that it comes first

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[jferguson0000]

I agree with you guys. It must be a book error.

AUD - 81(5/29/13)
BEC - 76(10/13/13)
FAR - 70(4/1/13), 68(7/2/13), 81(2/28/14)
REG - 65(5/30/14), 73(8/31/14), 83(10/8/14) DONE!!!

[jferguson0000]

I agree with you guys. It must be a book error.

AUD - 81(5/29/13)
BEC - 76(10/13/13)
FAR - 70(4/1/13), 68(7/2/13), 81(2/28/14)
REG - 65(5/30/14), 73(8/31/14), 83(10/8/14) DONE!!!

[Lindrobe]

Hi Topsya. I just ran across this exact question in my NINJA MCQs and the correct answer according to Ninja is (a).

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

Hi Topsya. I just ran across this exact question in my NINJA MCQs and the correct answer according to Ninja is (a).

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Author]

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