Priority of payment in bankruptcy distribution ranks trustee costs, workmen's dues, secured debts, employee claims, and government dues first. Priority of payment in bankruptcy distribution is fixed by a statutory order overriding contrary laws: bankruptcy trustee costs and expenses rank first, followed by workmen's dues and secured creditors, then employee wages, government dues, and lastly all other debts including unsecured debts. Debts within each class rank equally, shortfall is borne rateably, unsecured creditors rank equally unless agreed otherwise, surplus is applied to post-commencement interest, and partnership and separate property are applied according to the distinct liabilities of the firm and partners.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Priority of payment in bankruptcy distribution ranks trustee costs, workmen's dues, secured debts, employee claims, and government dues first.
Priority of payment in bankruptcy distribution is fixed by a statutory order overriding contrary laws: bankruptcy trustee costs and expenses rank first, followed by workmen's dues and secured creditors, then employee wages, government dues, and lastly all other debts including unsecured debts. Debts within each class rank equally, shortfall is borne rateably, unsecured creditors rank equally unless agreed otherwise, surplus is applied to post-commencement interest, and partnership and separate property are applied according to the distinct liabilities of the firm and partners.
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