Expenses of the trustee take priority over municipal taxes in the distribution of assets of the bankrupt firm.

Question

Quizplus · Accepted Answer

The expenses of the trustee, including their fees and any costs incurred in administering the bankruptcy proceedings, are given priority over most other claims, including municipal taxes, in the distribution of assets from a bankrupt firm's estate. This is because the trustee's role is crucial in ensuring that the assets are gathered and distributed to creditors fairly and efficiently.

Expenses of the Trustee Take Priority Over Municipal Taxes in the Distribution