§ 73.4     Deferred Payments Are Permitted
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 73.4, at ¶ ____, LundinOnChapter13.com (last visited __________).
[1]

Section 1322(a)(2) states that the plan can retire priority claims “in deferred cash payments.”1 Debtors can propose to pay taxes and other priority claims by deferred cash payments through the plan.2

[2]

The phrase “deferred cash payments” is not defined by the Code. It probably means that the total amount of each priority claim can be divided into discrete payments through the plan on some specified basis. It has been held that deferred cash payments in § 1322(a)(2) does not require equal payments over the life of the plan; rather, “[d]eferred cash payments need not start at the inception of the plan, but may be paid in periodic intervals over the life of the plan as determined by the individual debtor.”3 11 U.S.C. § 1322(b)(4) allows the Chapter 13 debtor to provide for payments on any unsecured claim “to be made concurrently with payments on any secured claim or any other unsecured claim.”4 Claims entitled to priority in a Chapter 13 case under §§ 1322(a)(2) and 507(a) are almost always unsecured claims.5 Thus, § 1322(a)(2) and (b)(4) work in concert to give Chapter 13 debtors much discretion in designing how priority claims will be paid in full in deferred payments through the plan.

[3]

For example, if there will be monthly distributions to creditors, the debtor can propose a monthly payment to the holder of a priority claim—either a specific monthly amount or a pro rata distribution. The debtor can propose that priority claim holders be paid in deferred cash payments over the life of the plan as money is available. It may not be possible to predict exactly when payments will be made and in what amounts, but it is sufficient for purposes of § 1322(a)(2) that the plan proposes and is funded adequately to pay priority claims in full over the life of the plan.

[4]

Changes to the Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)6 may affect the deferred payment of priority claims in cases filed on or after October 17, 2005. Detailed elsewhere,7 BAPCPA moved the priority for alimony, maintenance and support formerly in § 507(a)(7) to first priority in § 507(a)(1) and redefined this first priority as “domestic support obligations” (DSOs) in § 101(14A). The new definition of DSO includes a support obligation that “accrues before, on or after the date of the order for relief.”8 On its face, the new first priority for DSOs in § 507(a)(1) includes pre- and postpetition support obligations—all of which can be paid “in deferred payments” under § 1322(a)(2).

[5]

BAPCPA also added a new condition for confirmation of a plan in § 1325(a)(8): the debtor must have paid “all amounts that are required to be paid under a domestic support obligation and that first become payable after the date of the filing of the petition.”9 In other words, to confirm a plan, every Chapter 13 debtor must be current at confirmation with respect to any DSO that first became payable after the petition.

[6]

A support obligation that becomes payable after the petition would be a priority DSO under §§ 101(14A) and 507(a)(1). Section 1322(a)(2) requires the plan to provide full payment “in deferred cash payments” for all DSO debts entitled to priority. But § 1325(a)(8) requires that all DSOs that become payable after the petition must have already been paid to accomplish confirmation. This collision in the statutory requirements for confirmation will probably be resolved by permitting postconfirmation “deferred payments” of the prepetition portion of a DSO claim while requiring that all DSO payments that become payable after the petition must be current at confirmation. Allowing a Chapter 13 debtor to defer beyond confirmation payment of a DSO that first becomes payable between the petition and confirmation would seem to violate the condition for confirmation in § 1325(a)(8). This interpretation admits the odd possibility that a priority DSO that first becomes payable after confirmation of a plan could be paid in deferred payments consistent with § 1322(a)(2). In other words, the new confirmation requirement in § 1325(a)(8) only applies to DSO debts that first become payable between the petition and confirmation of a plan. The deferred payment power in § 1322(a)(2) would apply to all prepetition DSOs and to all priority DSO debts that first become payable after confirmation.

[7]

BAPCPA created a separate subclass of priority DSO debt in § 507(a)(1)(B) for DSOs assigned to a governmental unit for purpose other than collection of the debt.10 An assigned DSO described in § 507(a)(1)(B) is a priority debt that would otherwise be entitled to full payment in deferred payments under § 1322(a)(2). But BAPCPA also added a new § 1322(a)(4) that permits a Chapter 13 plan to pay a § 507(a)(1)(B) assigned DSO debt less than in full if the plan otherwise provides that all of the debtor’s projected disposable income11 for a five-year period will be applied to make payments under the plan.12 Under the circumstances described in § 1322(a)(4), the concept of deferred payments in § 1322(a)(2) includes the possibility that a portion of an assigned DSO debt would be deferred for payment after the completion of payments under the plan.

[8]

Some of the debts entitled to priority under § 507 and to full payment under § 1322(a)(2) are also nondischargeable at the completion of payments in the Chapter 13 case.13 Some debts entitled to priority and to full payment are only nondischargeable in the event of hardship discharge14 or conversion to Chapter 7.15 Nondischargeability in the Chapter 13 case or in the event of conversion to Chapter 7 suggests to some debtors that the full payment of priority claims should be accelerated or preferred over the payment of general unsecured claims.

[9]

That § 1322(b)(4) permits but does not require the concurrent payment of all unsecured claims suggests that a Chapter 13 plan can pay priority claims in advance of the claims of other unsecured claim holders.16 On the other hand, the power to pay priority claims in deferred payments does not necessarily give the debtor carte blanche to design repayment schemes that prefer priority claims over all other claims. For example, one court refused a debtor’s proposal to pay attorneys’ fees17 ahead of mortgage arrearages.18 Another court held that § 1322(a)(2) permits payment of attorneys’ fees in a lump sum before secured claims notwithstanding that a one-month delay in distributions to lienholders results.19

[10]

After BAPCPA, the payment of priority debts in deferred payments collides with the pre- and postconfirmation adequate protection rights of some secured claim holders. Detailed elsewhere,20 the holders of some allowed claims secured by personal property are entitled to adequate protection payments before confirmation.21 Somewhat differently described by BAPCPA, the holders of some allowed claims secured by personal property are also entitled to payments after confirmation that are not less than the amount necessary to provide adequate protection.22 These adequate protection entitlements collide with the power to pay priority claims in full in deferred payments under § 1322(a)(2). For example, there has been much controversy in reported decisions with respect to the payment of priority claims for attorneys’ fees when the payment of attorneys’ fees reduces the funds available to make adequate protection payments to secured claim holders with pre- and/or postconfirmation adequate protection rights.23 BAPCPA compounded this complication by entitling some secured claim holders to distributions in “equal monthly amounts.”24 The power to pay priority debts in deferred cash payments must be exercised with appropriate respect for the adequate protection and equal-payment rights of some secured claim holders after BAPCPA.25

[11]

Debtors will have to construct a classification of claims26 to accomplish full payment of priority claim holders in any Chapter 13 case in which the plan does not propose full payment of all unsecured claims. Any proposed separate classification of priority claims will have to pass the “unfair discrimination” test for confirmation under § 1322(b)(1).27 Mentioned above, with respect to assigned DSO debts described in § 507(a)(1)(B), the argument for separate classification includes the statutory authority in § 1322(a)(4) which supports separate classification for less than full payment of an assigned DSO when the debtor has committed all projected disposable income to payments under the plan for five years.28

[12]

Section 1322(a)(2) permits deferred payment of § 507 priority claims without consent of the claim holders and notwithstanding other statutes—the Internal Revenue Code, for example—that call for more immediate payment. It has been held that Chapter 13 debtors are not prohibited from proposing a plan with the principal purpose of deferring the payment of priority tax claims, but such a plan must pass the good-faith test for confirmation in § 1325(a)(3).29

[13]

The power to pay priority claims in deferred cash payments under § 1322(a)(2) may overlap the provisions of § 1326 relating to the order of payments to creditors. 11 U.S.C. § 1326(b)(1) provides that “any unpaid claim of the kind specified in section 507(a)(2)” shall be paid “before or at the time of each payment to creditors under the plan.”30 As mentioned above,31 the administrative expenses and charges described in § 507(a)(2) are treated by most Chapter 13 plans and in many reported decisions as priority claims entitled to full payment in deferred cash payments under § 1322(a)(2). It could be argued that § 1326(b)(1) provides greater flexibility for the management of administrative expenses through a Chapter 13 plan. Deferred payments under § 1322(a)(2) suggests payments to priority claim holders throughout the Chapter 13 plan. Payments “before or at the time of” payments to other creditors under the plan in § 1326(b)(1) would authorize the payment of administrative expenses even earlier than deferred payments. Section 1326(b)(1) only deals with the second priority in § 507(a)(2)—administrative expenses, fees and other charges. Section 1322(a)(2) permits deferred payment of all classes of priority claims listed in § 507. A negative inference might be drawn that only administrative expenses and filing fees described in § 507(a)(2) can be paid “before” payments to other creditors.32

[14]

In contrast to distributions under § 726(a)(1) in a Chapter 7 case—priority claims are paid in the order found in § 507(a)—the Code does not specify any particular order for payment of priority claims in Chapter 13 cases. It has been held that if the plan provides for payment in the § 507(a) order, the plan will control.33


 

1  11 U.S.C. § 1322(a)(2) (“provide for the full payment, in deferred cash payments, of all claims entitled to priority . . .”) (emphasis added).

 

2  In re Parker, 21 B.R. 692 (E.D. Tenn. 1982); In re Mason, 18 B.R. 817 (Bankr. W.D. Tenn. 1982); In re Diego, 6 B.R. 468 (Bankr. N.D. Cal. 1980); In re Cloutier, 3 B.R. 584 (Bankr. D. Colo. 1980).

 

3  In re Ferguson, 134 B.R. 689, 696 (Bankr. S.D. Fla. 1991) (en banc).

 

4  11 U.S.C. § 1322(b)(4). See § 204.2 [ Order of Payments to Creditors ] § 113.7  Order of Payments to Creditors before BAPCPA.

 

5  In cases filed before October 17, 2005—the general effective date of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Pub. L. No. 109-8, 119 Stat. 23 (2005)—the priority for alimony, maintenance and support in former § 507(a)(7) included the possibility of a secured claim for support. See §§ 99.1 [ What Claims Are Priority Claims? ] § 73.2  What Claims Are Priority Claims?, 100.3 [ Secured Priority Claims? ] § 73.7  Secured Priority Claims?, 300.1 [ Secured Priority Claims? ] § 136.18  Secured Priority Claims before BAPCPA and 301.1 [ Alimony, Maintenance and Support in Cases Filed after October 22, 1994 ] § 136.20  Alimony, Maintenance and Support in Cases Filed after October 22, 1994. BAPCPA moved the support priority from § 507(a)(7) to § 507(a)(1) and redefined this priority as domestic support obligations (DSOs) that are only unsecured debts for support. See §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA, 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA and 521.1 [ Secured Priority Claims ] § 136.19  Secured Priority Claims after BAPCPA. After BAPCPA, there is also the possibility of a secured priority claim for administrative expenses under § 507(a)(2) and the odd possibility of a secured priority claim for death or personal injury resulting from the operation of a motor vehicle or vessel while intoxicated under § 507(a)(10). See §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA, 521.1 [ Secured Priority Claims ] § 136.19  Secured Priority Claims after BAPCPA, 522.1 [ The New DWI Priority ] § 136.22  The Driving or Boating while Intoxicated Priority after BAPCPA and 523.1 [ Miscellaneous Administrative Expenses and Priority Claims ] § 136.15  Miscellaneous Administrative Expenses and Priority Claims after BAPCPA.

 

6  Pub. L. No. 109-8, 119 Stat. 23 (2005).

 

7  See §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA, 441.1 [ New and Changed Treatment of Priority Claims ] § 73.6  Treatment of Priority Claims Changed by BAPCPA, 458.1 [ Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) ] § 88.5  Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) after BAPCPA, 498.1 [ Domestic Support Obligations Must Be Current ] § 113.3  Domestic Support Obligations Must Be Current, 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA and 552.1 [ Domestic Support Obligations: § 523(a)(5) ] § 159.5  Domestic Support Obligations: § 523(a)(5).

 

8  11 U.S.C. § 101(14A), discussed in §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA and 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA.

 

9  11 U.S.C. § 1325(a)(8), discussed in § 498.1 [ Domestic Support Obligations Must Be Current ] § 113.3  Domestic Support Obligations Must Be Current.

 

10  11 U.S.C. § 507(a)(1)(B), discussed in §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA, 441.1 [ New and Changed Treatment of Priority Claims ] § 73.6  Treatment of Priority Claims Changed by BAPCPA, 458.1 [ Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) ] § 88.5  Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) after BAPCPA and 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA.

 

11  Projected disposable income is discussed beginning at § 91.1  In General.

 

12  11 U.S.C. § 1322(a)(4), discussed in §§ 441.1 [ New and Changed Treatment of Priority Claims ] § 73.6  Treatment of Priority Claims Changed by BAPCPA, 458.1 [ Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) ] § 88.5  Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) after BAPCPA and 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA.

 

13  After BAPCPA, debts entitled to priority under § 507(a) that are also nondischargeable at the completion of payments under a plan include DSOs, some taxes and some debts for death or personal injury caused by operating a motor vehicle or vessel while intoxicated. See §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA, 441.1 [ New and Changed Treatment of Priority Claims ] § 73.6  Treatment of Priority Claims Changed by BAPCPA, 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA, 519.1 [ Domestic Support Obligations ] § 136.21  Domestic Support Obligations after BAPCPA, 522.1 [ The New DWI Priority ] § 136.22  The Driving or Boating while Intoxicated Priority after BAPCPA, 548.1 [ Taxes ] § 159.1  Taxes, 552.1 [ Domestic Support Obligations: § 523(a)(5) ] § 159.5  Domestic Support Obligations: § 523(a)(5) and 555.1 [ Boating or Flying while Intoxicated: § 523(a)(9) ] § 159.8  Boating or Flying while Intoxicated: § 523(a)(9). Prior to BAPCPA, § 507(a)(7), as amended by the Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, § 304, 108 Stat. 4106 (1994), created a priority for debts for alimony, maintenance or support, most of which were also nondischargeable at the completion of payments in a Chapter 13 case under § 1328(a)(2) and (c)(2). See § 345.1 [ Alimony, Maintenance or Support ] § 158.1  Alimony, Maintenance or Support.

 

14  See §§ 354.1 [ Exceptions to Hardship Discharge ] § 160.6  Exceptions to Hardship Discharge before BAPCPA and 558.1 [ New and Changed Exceptions to Hardship Discharge ] § 160.7  Exceptions to Hardship Discharge Added or Changed by BAPCPA.

 

15  At hardship discharge before the completion of payments in a Chapter 13 case and at conversion to Chapter 7, all of the debts specified in § 523(a) are nondischargeable. See §§ 345.1 [ Alimony, Maintenance or Support ] § 158.1  Alimony, Maintenance or Support and 558.1 [ New and Changed Exceptions to Hardship Discharge ] § 160.7  Exceptions to Hardship Discharge Added or Changed by BAPCPA. The broader exceptions to discharge applicable before the completion of payments in a Chapter 13 case and at conversion to Chapter 7 include debts that are also priority claims entitled to full payment in deferred cash payments during the Chapter 13 case. For example, the exception to discharge for taxes in § 523(a)(1) includes many classes of tax claims that would be entitled to priority and full payment at confirmation under §§ 1322(a)(2) and 507(a)(8), notwithstanding that many of those same tax claims would be priority but dischargeable at the completion of payments under the plan because of the broader discharge in a full-payment Chapter 13 case. See §§ 513.1 [ Taxes ] § 136.3  Taxes after BAPCPA and 548.1 [ Taxes ] § 159.1  Taxes.

 

16  See § 204.2 [ Order of Payments to Creditors ] § 113.7  Order of Payments to Creditors before BAPCPA. See, e.g., In re Cason, 190 B.R. 917, 933–34 (Bankr. N.D. Ala. 1995) (Because “[t]here is no provision of § 507(a)(1) which requires full payment of priority claims before payments can begin to other claimholders,” trustee is authorized to make contemporaneous distributions to creditors entitled to adequate protection and to holders of administrative expenses. If the trustee does not have enough money to make both payments, “they should be paid pro rata.” If confirmation is denied, “claimholders whose adequate protection failed would be entitled to superpriority pursuant to § 507(b) (which would allow payment of accrued adequate protection ahead of other administrative expenses).”).

 

17  Technically, attorneys’ fees may be administrative expenses, not priority claims. See §§ 99.1 [ What Claims Are Priority Claims? ] § 73.2  What Claims Are Priority Claims?, 100.4 [ Special Provisions for Attorneys’ Fees ] § 73.8  Special Provisions for Attorneys’ Fees, 291.1 [ Treatment of Priority Claims ] § 136.1  Treatment of Priority Claims and 294.1 [ Debtors’ Attorneys’ Fees ] § 136.6  Debtors’ Attorneys’ Fees before BAPCPA.

 

18  In re Townsend, 186 B.R. 248, 249 (Bankr. E.D. Mo. 1994) (Plan cannot pay debtor’s attorneys’ fees ahead of and “to exclusion of” mortgage arrearage. “The opportunity to cure a default is a shield by which a debtor can heal a delinquent debt. It is not a sword which the debtor can use to further delay payment while the attorney collects a fee. . . . Payment of attorney fees cannot usurp the obligation to provide equal monthly payments beginning with the first disbursement under the plan.”). See § 100.4 [ Special Provisions for Attorneys’ Fees ] § 73.8  Special Provisions for Attorneys’ Fees.

 

19  In re Moses, 293 B.R. 711 (Bankr. E.D. Mich. 2003).

 

20  See §§ 402.1 [ Disposition of Preconfirmation Payments ] § 44.7  Disposition of Preconfirmation Payments after BAPCPA and 426.1 [ Adequate Protection Rights before Confirmation ] § 57.3  Preconfirmation Adequate Protection Rights after BAPCPA.

 

21  See 11 U.S.C. § 1326(a)(1)(C), discussed in §§ 401.1 [ Preconfirmation Payments ] § 44.6  Preconfirmation Payments after BAPCPA, 402.1 [ Disposition of Preconfirmation Payments ] § 44.7  Disposition of Preconfirmation Payments after BAPCPA and 426.1 [ Adequate Protection Rights before Confirmation ] § 57.3  Preconfirmation Adequate Protection Rights after BAPCPA.

 

22  11 U.S.C. § 1325(a)(5)(B)(iii)(II), discussed in § 449.1 [ “Adequate Protection” after Confirmation ] § 74.15  “Adequate Protection” after Confirmation after BAPCPA.

 

23  See §§ 402.1 [ Disposition of Preconfirmation Payments ] § 44.7  Disposition of Preconfirmation Payments after BAPCPA, 442.1 [ Attorney Fees after BAPCPA ] § 73.9  Attorney Fees after BAPCPA and 449.1 [ “Adequate Protection” after Confirmation ] § 74.15  “Adequate Protection” after Confirmation after BAPCPA.

 

24  See 11 U.S.C. § 1325(a)(5)(B)(iii)(I), discussed in § 448.1 [ Equal Monthly Installments ] § 74.14  Equal Monthly Installments after BAPCPA.

 

25  See §§ 442.1 [ Attorney Fees after BAPCPA ] § 73.9  Attorney Fees after BAPCPA, 448.1 [ Equal Monthly Installments ] § 74.14  Equal Monthly Installments after BAPCPA, 449.1 [ “Adequate Protection” after Confirmation ] § 74.15  “Adequate Protection” after Confirmation after BAPCPA and 501.1 [ Order of Payments to Creditors ] § 113.8  Order of Payments to Creditors after BAPCPA.

 

26  See §§ 149.1 [ Power to Classify Unsecured Claims: Tests for Unfair Discrimination ] § 87.1  Power to Classify Unsecured Claims: Tests for Unfair Discrimination and 460.1 [ New Priority Claims ] § 87.5  Priority Claims after BAPCPA.

 

27  See §§ 151.1 [ Priority Claims ] § 87.4  Priority Claims, 458.1 [ Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) ] § 88.5  Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) after BAPCPA and 460.1 [ New Priority Claims ] § 87.5  Priority Claims after BAPCPA.

 

28  See § 458.1 [ Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) ] § 88.5  Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) after BAPCPA.

 

29  Goeb v. Heid (In re Goeb), 675 F.2d 1386 (9th Cir. 1982). See § 190.1 [ Tax Problems ] § 107.3  Tax Problems.

 

30  11 U.S.C. § 1326(b)(1), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Pub. L. No. 109-8, 119 Stat. 23 (2005). Prior to BAPCPA, § 1326(b)(1) referred to § 507(a)(1). Use of the word “claim” in a sentence referencing § 507(a)(2) is at least unfortunate if not downright confusing. Technically, there are no claims in 507(a)(2), only administrative expenses, fees and other charges.

 

31  See § 73.1  Plan Must Provide Full Payment§ 73.2  What Claims Are Priority Claims?, § 73.3  Priority Claims Added or Changed by BAPCPA§ 136.14  Miscellaneous Administrative Expenses and Priority Claims before BAPCPA and § 136.15  Miscellaneous Administrative Expenses and Priority Claims after BAPCPA.

 

32  See §§ 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA and 441.1 [ New and Changed Treatment of Priority Claims ] § 73.6  Treatment of Priority Claims Changed by BAPCPA. See also In re Aldridge, 335 B.R. 889, 892 (Bankr. S.D. Ala. Nov. 16, 2005) (Mahoney) (“By stating that administrative claims must be paid before or at the time of each payment to creditors under the plan, the Code gives a debtor the choice of paying administrative claims before or concurrently with other claims, so long as the administrative claim payments begin no later than the first payment to other claim holders. . . . As long as full payment of the priority claims is provided for in the plan, nothing in § 1322 requires that higher priority claims must be paid fully before paying lower priority claims.”).

 

33  In re Aldridge, 335 B.R. 889, 892 (Bankr. S.D. Ala. Nov. 16, 2005) (Mahoney) (Even though the Code does not require a support arrearage claim to be paid prior to a tax claim, the terms of the confirmation order requiring priority creditors to be paid in the order established in § 507 compels such a result. The Department of Human Resources filed a motion, complaining that the Chapter 13 trustee was making disbursements on tax obligations pro rata with obligations owing to the Department of Human Resources for back child support. The form order confirming the plan specifically provided that any claim entitled to priority would be paid in the order set forth in § 507 unless the priority had been expressly waived. Although in Chapter 7 a priority claim under 507(a)(7) must be paid before a priority established in 507(a)(8), Chapter 13 “requires only that the trustee’s fee and any unpaid priority claim of the kind specified in § 507 must be paid ‘[b]efore or at the time of each payment to creditors under the plan.’ . . . Section 1326 does not set forth any order of payment for the other priority claims.”).