Our workflow is typically as follows, using the https://bugs.amahi.org

Status

Generally, the flow of the bugs' status is typically captured with this crude diagram:

   New ==> [ Assigned <==> Feedback ] ==> Closed

bugs start as New and no one assigned
if at the time of creation or any time later you know who should take it, set it to Assigned and set the Assignee to the person who should work on it
if some question arises or more info is needed, set the bug to Feedback and set the assignee to the person who should provide the feedback or answer the question
the person answering should set the bug to Assigned and the assignee to the person working to fix the bug or implement the feature
once the person working on it is done, it sets it to Feedback and assignee to the person who need to verify the issue
if the issue verifies well, the person assigned sets it to Closed and it's all done
if not, then the bug should be set to Assigned and the assignee to the person working on it
if the issue is found to recur, the bug is opened by setting it to Assigned and the assignee to the person working on it

Priorities

we list all bugs and features¹ as the default priority (Normal)
what we need to work on at any given time should be set to High (the list of issues can be sorted by priority easily, to see things better)
what we should work on *next* should be set to Medium priority
we work on what should be high/medium on weekly planning meetings or perhaps email, as needed
once we get done with one item that is high priority, it gets set to closed

¹ we do not have a strong enforcement of bugs/features, at least at the moment