Stephen C. Hunt's Answers

Chapter 11 Proof of Claim Filing---Am I "Priority" or "Unsecured"?

Bankruptcy Code Section 507(a)(4)(A) authorizes payment of priority claims for wages earned within 180-days of the bankruptcy petition date, or cessation of the debtor's business, whichever is first, capped at $10,950. However, as you indicated you were a freelance worker, you also need to examine Section 507(a)(4)(B), which authorizes an independent contractor to file a priority claim for ordinary course goods or services, provided that at least 75% of the amount earned by the individual...

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