Privileged debt

Privileged debt – this legal term is used in the area of Insolvency Procedures. It details a secured debt, which has priority among the other debts, and should be repaid first to judgment creditors (who are called “privileged creditors”). For example privileged debts are these towards the State or the Municipality, the secured debts with mortgages, special pledges, etc. A synonym is “senior debt”.

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