The principle of creditor equality in bankruptcy essentially means that all creditors are to recover the same amount from the bankrupt's estate.

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The principle of creditor equality in bankruptcy is actually not true. In bankruptcy, creditors are prioritized based on the type of debt they are owed. For example, secured creditors have the first claim on certain assets, while unsecured creditors are lower on the priority list. Additionally, certain debts such as taxes and child support may have higher priority than other unsecured debts. Therefore, not all creditors are treated equally in bankruptcy.

The Principle of Creditor Equality in Bankruptcy Essentially Means That