Question: Bradley goes into bankruptcy under Chapter 7 owing $5,000 as wages to his four employees. There is enough in his estate to pay all costs

Bradley goes into bankruptcy under Chapter 7 owing $5,000 as wages to his four employees. There is enough in his estate to pay all costs of administration and enough to pay his employees, but nothing will be left for general creditors. Do the employees take all the estate? If so, under what conditions? If the general creditors received nothing, would these debts be discharged?


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Section 507 provides a priority for wages salaries or commissions earned within ninety days ... View full answer

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