In a Chapter 7 proceeding, unsecured creditors' claims are subordinate to the claims of secured creditors.

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In a Chapter 7 bankruptcy proceeding, the claims of secured creditors are prioritized over the claims of unsecured creditors. This means that secured creditors are paid from the proceeds of the sale of the collateral securing their loans before any distribution is made to unsecured creditors.

In a Chapter 7 Proceeding, Unsecured Creditors' Claims Are Subordinate