Legally they are liabilities that don’t as much disappear as they become claims. Deposit holders become creditors. It’s seventh in the priority list behind othe

Legally they are liabilities that don’t as much disappear as they become claims. Deposit holders become creditors. It’s seventh in the priority list behind other secured priority creditors. It’s messy. 11 U.S.C. § 507(a)(7) provides the priority for Customer Deposits: “The following expenses and claims have priority in the following order: … (7) Seventh, allowed unsecured claims of individuals, to the extent of $2,600 for each such individual, arising from the deposit, before the commencement of the case, of money in connection with the purchase, lease, or rental of property, or the purchase of services, for the personal, family, or household use of such individuals, that were not delivered or provided.