Which of the following is the highest in the priority of claims in Chapter 7?

Question

Quizplus · Accepted Answer

Secured creditors have a higher priority of claims than unsecured creditors, preferred shareholders, and common shareholders in Chapter 7 bankruptcy. Secured creditors have collateral that can be sold to repay their debt, while unsecured creditors do not. Preferred shareholders and common shareholders are at the bottom of the priority list and are often not able to recover their investments in bankruptcy proceedings.

Which of the Following Is the Highest in the Priority