How 11 U.S.C. § 507 applies in New Mexico — federal bankruptcy law, New Mexico district data.
Not all unsecured debts are equal. Priority claims — domestic support, certain taxes, wages owed to employees, and specific government claims — get paid before general unsecured creditors. In Chapter 13, priority claims must be paid in full over the plan.
Districts covered: D.N.M..
The rules above are federal — they apply identically in every state. What varies by state is exemptions (§522), median income thresholds (means test), and case-law interpretations of ambiguous terms. For a New Mexico-specific answer, check the screener or consult a local attorney.
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