Under a Chapter 7 bankruptcy,which one of the following is generally considered to be the highest priority claim?
A)Consumer claim
B)Payment of employee wages
C)Payment to an unsecured creditor
D)Company contribution to the employees' retirement account
E)Dividend payment to preferred shareholder

Question

Quizplus · Accepted Answer

Payment of employee wages is considered a priority claim in a Chapter 7 bankruptcy. This means that wages owed to employees are given priority over other unsecured claims, such as claims from creditors or shareholders. The rationale behind this is to protect the livelihoods of workers who may already be financially vulnerable.

Under a Chapter 7 Bankruptcy,which One of the Following Is