Priority of payment in bankruptcy debt distribution follows a statutory waterfall for secured, employee, government and unsecured claims. Priority of payment in bankruptcy follows a statutory waterfall: bankruptcy trustee costs rank first, then workmen's dues and secured creditors, followed by employee dues, government dues for the specified period, and lastly all other debts including unsecured debts. Debts within each class rank equally and are paid rateably if the estate is insufficient. Surplus after principal debts is applied to interest, unsecured creditors rank equally unless agreed otherwise, and special rules govern partnership property and separate property.