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 III
D)Both II and III

Question

Quizplus · Accepted Answer

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

As Defined by the Bankruptcy Code,creditors with Priority