The rule governing hierarchical order in which claim payments must be made during a bankruptcy is known as the:

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The absolute priority rule sets the order of payment for claims in a bankruptcy according to the hierarchy of creditors. This rule requires that creditors with higher priority need to be paid in full before creditors with lower priority receive any payment. The rule is intended to ensure fairness in the distribution of assets during a bankruptcy process.

The Rule Governing Hierarchical Order in Which Claim Payments Must