As defined by the Bankruptcy Code,creditors with priority:
I.have collateral claim against specific assets.
II.are unsecured creditors who have priority over other unsecured creditors.
III.are the first to be paid from any proceeds available to unsecured creditors.
A) I only
B) II only
C) I, II and II
D) Both II and III

Question

Quizplus · Accepted Answer

Creditors with priority are the first to be paid from any proceeds available to unsecured creditors. They include unsecured creditors who have priority over other unsecured creditors and secured creditors who have collateral claim against specific assets. Therefore, both option II and III are correct, making option D the best choice.

As Defined by the Bankruptcy Code,creditors with Priority