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

Question

Quizplus · Accepted Answer

The principle of creditor equality in bankruptcy does not mean that all creditors are to recover the same amount from the bankrupt's estate. Instead, it means that all creditors should be treated fairly and receive an equal opportunity to recover their debts, based on the priority of their claims and the available assets in the estate. The priority of claims is usually determined by law and may prioritize certain types of debts or creditors over others.

The Principle of Creditor Equality in Bankruptcy Essentially Means That