Priority as creditor

Priority as creditor – this term is used in the area of Bankruptcy Law. It refers to the situation, where a creditor is a privileged one, among the others (on the base of the type of the debt, or on the base of a security, established in their favor on the assets of the bankrupted debtor, etc.). This creditor will submit a priority claim, giving him advantage among other unsecured claims by creditors. So he will be satisfied before other creditors. For example, this could be the Government (claiming unpaid taxes), or a bank with mortgaged property in their favor to secure a loan.

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