4 ms·
My recollection from ending up on the losing end of a client’s bankruptcy when freelancing was that suppliers are often the last in line to collect on any debts
by cimmanom 8y ago
My recollection from ending up on the losing end of a client’s bankruptcy when freelancing was that suppliers are often the last in line to collect on any debts. But it may also depend on jurisdiction.
- nostrademons 8y agoI think you're right. A little bit of Wikipedia research suggested that the top tier is unpaid wages, taxes, tort claims, and environmental cleanups. Suppliers, unless they've specifically negotiated for a lien on the company's assets, fall into the "general unsecured creditor" category, which means they get paid alongside lines of credit and unsecured bonds, after collateralized debt but before stockholders.