You'll indicate whether your debt is secured, unsecured, or priority in the official bankruptcy paperwork you file with the court. The type of debt determines how or whether a creditor will get paid. So a creditor must also identify whether the debt is secured, unsecured, or priority in the proof of claim submitted for payment.
Chapter 7 bankruptcy is often a good way for a struggling small business to wind down operations and satisfy creditors. Small business owners can also file a personal Chapter 7 bankruptcy after the company closes to get out from under business debt.