What is a priority creditor?

A priority creditor is a type of creditor in Washington who has a legal right to receive payment from a bankrupt debtor before other creditors. This is because the law ranks certain types of creditors higher than others. In Washington, priority creditors have the right to receive payment before any other creditors and are typically paid in full before other creditors receive anything. Most priority creditors in Washington are required to be paid in full and have priority over all other creditors. These creditors include: the IRS, State Taxes, salaries and wages due to employees, and taxes due to the US government. Other priority creditors in Washington may include a few other creditors such as secured creditors and court-ordered child support payments. Priority creditors take priority over all other creditors, including secured creditors and unsecured creditors. Secured creditors may obtain a court order which allows them to be paid first, but the priority creditors still take precedence over other creditors in this situation. Unsecured creditors, on the other hand, do not take precedence over priority creditors and may not receive any payments if the priority creditors get paid first. It is important to remember that a priority creditor in Washington has the right to be paid before all other creditors. If a debtor fails to pay priority creditors, they may be forced to pay the debts through the court system and may face legal ramifications if they do not.

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