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You can see the list in the link above, but the short answer is very few, such as domestic support (alimony, child support) and administrative expenses of the b
by lawguy 9y ago
You can see the list in the link above, but the short answer is very few, such as domestic support (alimony, child support) and administrative expenses of the bankruptcy. The most important creditors with higher priority who are not on the list are secured creditors, such as lenders with mortgages on real and personal property -- but I'd be surprised if this varied much internationally.
Prioritized wages get paid even before unpaid taxes do.
- thinkloop 9y agoI'm surprised secured credit would get priority over wages. Creditors make money by taking on risk. Wage workers make no such agreement.
- evgen 9y agoProbably because the security is specific real property, so that someone can't give everyone a $100k/week raise and then declare bankruptcy and use the court against the secured creditor. If this were not the case then it would be hard to convince someone to lend for the various bits of real property that make commerce work. Secured creditors are taking on a risk, but not a very big risk because they have first claim on the secured property.
- thinkloop 9y agoInteresting! Well thought.