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Obviously, the debtor doesn’t have sufficient ready funds to pay all creditors at the time of filing. Instead, an approved plan relies on future business earnings and profits to address creditor debts. The debt claims are prioritized with taxes owed being paid first. Secured claims will come next and unsecured debts follow third with partial payments.
Read more: California Chapter 11 Bankruptcy Law | eHow.com http://www.ehow.com/about_7228163_california-chapter-11-bankruptcy-law.html#ixzz1gjFQ5400
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