order of priority

see - http://www.lawdog.com/bkrcy/bkcp7g.htm

1. administrative expenses

2. unpaid wages

3. unsecured claims - employee benefit plans

4. claims farmers and fishers

5. consumer deposits up to $1950 - purhcase, lease, rental property

6. paternity, alimony, maintenance - support debts

7. taxes

8. general creditors

example

Montoro petitioned for a voluntary bankruptcy

$ 2500 promissory note

$ 4000 back wages - Elmer

$ 3000 contributions to an employee benefit plan

$ 5000 unsecured loan - bank

$ 500 - accountant for trustee

$ 1000 property taxes

$ 20, 000 credit card debts

$15,000 to distribute

1. $ 500 trustee

2. $4000 past wages

3. $ 3000 employee benefit plan

3. $ 1000 taxes

4. $ 15,000 - $8,500 = $6,500 to credit cards and unsecured debts