Legal Question in Bankruptcy in Pennsylvania

Objection to claim priority status chapter 7

We are a respondent in a chapter 7 bankruptcy filing. We have filed an objection to claim as a priority status, the debtor's attorney says we are a non-priority claimant stating ''as an independent excavating contractor we are not entitled to wage priority under 11 U.S.C. 507(a)(3)(A). All objections state ''wage'' - we are not an employee of this company. We provided an extensive excavating service as per DER specifications. Are we not entitled??? What is 11 U.S.C. 507(a)(3)(A)?


Asked on 2/08/01, 2:12 pm

1 Answer from Attorneys

Re: Objection to claim priority status chapter 7

11 U.S.C. � 507(a)(3)(A) is part of the U.S. Bankruptcy Code and lists one of the priorities for distribution from the bankruptcy estate. This specific section covers allowed unsecured claims up to $4300 for "wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an individual." It sounds as if the debtor is saying that you may have a non-priority unsecured claim but you are not entitled to priority status.

You should consult with an experienced bankruptcy attorney regarding your claim. Please feel free to contact me if you want to discuss this matter further.

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Answered on 3/21/01, 6:24 pm


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