Priority of Claims
/ˈpraɪɚɪti əv kleɪmz/
Definitions
- (n.) The legal principle determining the sequence in which claims against a debtor or estate are satisfied.
The bankruptcy court applied the priority of claims to ensure secured creditors were paid before unsecured creditors.
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Commentary
Priority of claims is often governed by statutory rules and agreements; precise ordering can impact distributions in insolvency and bankruptcy cases.
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.