Priority Debts

Debtors often believe that priorities must be decided on the basis of the amount owed, or that any debt that is subject to a court order should be a priority. But the existence of a court judgement does not automatically accord priority status to a debt and there are millions of judgements given by courts. These debts would become a priority if the enforcement methods open to a creditor through a court posed a serious threat to the home, liberty or essential goods of a debtor.

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