In a Chapter 7 liquidation bankruptcy proceeding, the order of priority of satisfying claims is secured creditors, unsecured creditors, and then equity holders.

Question

Quizplus · Accepted Answer

This is correct. In Chapter 7 bankruptcy, secured creditors have priority in receiving payment from the liquidation of assets, followed by unsecured creditors, and lastly, equity holders.

In a Chapter 7 Liquidation Bankruptcy Proceeding, the Order of Priority