Creditor Priority
/ˈkrɛdɪtər praɪˈɒrɪti/
Definitions
- (n.) The legal ranking that determines the order in which creditors are paid from a debtor's assets during bankruptcy or insolvency proceedings.
In bankruptcy, secured creditors usually have creditor priority over unsecured creditors.
Forms
- creditor priority
- creditor priorities
Related terms
See also
Commentary
Creditor priority is crucial in insolvency law to clarify the payment order among competing creditors based on security interests or statutory rules.
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.