In a bankruptcy proceeding, which of the following debts will have the highest creditor priority?
A) Government tax claims.
B) Employees who are owed wages earned within 90 days of filing.
C) Consumers who have paid deposits or prepayments for undelivered goods or services up to $1,800 per consumer.
D) Creditors with claims in the ordinary course of business incurred after the bankruptcy was filed.
E) General creditors.

Question

Quizplus · Accepted Answer

The priority of bankruptcy creditors would be:1. Creditors with claims that arise from the costs of preserving/administering debtor's estate.2. Creditors with claims in the ordinary course of business after bankruptcy has been filed.3. Employees who are owed wages earned within 90 days, or employee benefits earned within 180 days of the bankruptcy petition.4. Consumers who have paid deposits or prepayments for undelivered goods or services.5. Government (for tax claims).6. Creditors who have other claims (general creditors).

In a Bankruptcy Proceeding, Which of the Following Debts Will