The financial claims of ________ are given priority when assets are distributed among creditors in a bankruptcy case.
A) employees
B) customers
C) bankruptcy lawyers
D) stockholders

Question

Quizplus · Accepted Answer

Chapter 7 of the bankruptcy code stipulates the order in which the assets are to be distributed among the creditors. First, creditors with secured claims receive the collateral for their claims or repossess the claimed asset. Then the unsecured claims are paid starting with the costs involved in the bankruptcy case.

The Financial Claims of ________ Are Given Priority When Assets