Creditor Hierarchy
/ˈkrɛdɪtər ˈhaɪəˌrɑrki/
Definitions
- (n.) The legally established order in which creditors are paid from a debtor's available assets during bankruptcy or insolvency proceedings.
The creditor hierarchy determines which creditors receive payment first in the event of liquidation.
Forms
- creditor hierarchy
Related terms
See also
Commentary
The creditor hierarchy is central in insolvency law, reflecting statutory priorities that affect creditor recovery outcomes.
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.