If the assets in a debtor's estate in bankruptcy are insufficient to pay fully all creditors, none of the creditors are paid.

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In a bankruptcy case, if the assets in the debtor's estate are insufficient to pay fully all creditors, they will be paid in a specific order of priority established by the Bankruptcy Code. Secured creditors, administrative expenses, priority unsecured creditors, and finally, general unsecured creditors, will be paid in that order. If there are any remaining debts after the distribution of all assets and payment to all creditors, they will be discharged. Therefore, some creditors may receive partial payment while others may receive nothing, but none of them will be left unpaid if there are sufficient assets in the estate.

If the Assets in a Debtor's Estate in Bankruptcy Are