Bankruptcy Priority
/ˈbæŋkrʌptsi praɪˈɒrɪti/
Definitions
- (n.) The legal ranking order established by bankruptcy law determining the sequence in which creditors are paid from the debtor's estate.
Secured creditors have bankruptcy priority over unsecured creditors when assets are distributed.
Forms
- bankruptcy priority
- bankruptcy priorities
Related terms
See also
Commentary
Bankruptcy priority governs the payment hierarchy and affects recovery rates; drafting should clearly specify creditor classes and statutory priorities.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.