Client AlertsGot A Priority Bankruptcy Claim? Nothing To Worry About Then, Right? Wrong.
It is a fundamental rule of bankruptcy that the claims of junior creditors cannot be satisfied until the claims of more senior creditors are paid in full, absent the senior creditors’ consent. In a chapter 7 liquidation case, 11 U.S.C. § 507 establishes a priority scheme which mandates that certain claims, such as for wages,...


