Will the trustee pay secured debts first with my assets?

[freshstart2006]

I'm filing chapter 7, pro se. At the 341 I was declared as having no assets. However, I am receiving a $2200 tax return. Will the trustee take the funds and pay off secured creditors first? Or do they distribute evenly between secured and unsecured creditors?

Thanks to everyone who has been helping me, this site is great!

[HHM]

No, generally, in the chapter 7 context, secured creditors are afforded no more priority than unsecured, mainly because, any claim of a secured creditor is first satisfied by selling the security (the asset, i.e. car etc.), then the claim of a secured creditor, the deficiency becomes a general unsecured debt.

If you want more info, Section 507 of the BK code sets out the priorities for claims.