The priority of claims established by Chapter Seven of the Bankruptcy Reform Act of 1978 gives priority to
A) unpaid employee benefit plan contributions over unsecured customer deposits.
B) common stockholders over taxes.
C) taxes over expenses of administering the bankruptcy.
D) preferred stockholders over claims of secured creditors.

Question

Quizplus · Accepted Answer

Under Chapter Seven of the Bankruptcy Reform Act of 1978, unpaid employee benefit plan contributions have a higher priority over unsecured customer deposits.

The Priority of Claims Established by Chapter Seven of the Bankruptcy