Simple English definitions for legal terms
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A priority claim is a type of claim that must be paid before other claims in a bankruptcy case. This means that if someone owes money to many different people, the ones with priority claims get paid first. There are nine different types of priority claims, including things like taxes, employee wages, and child support.
A priority claim is a type of claim that must be paid before other claims. This type of claim is often seen in bankruptcy cases where certain claims are given priority over others. The Bankruptcy Code sets forth nine classes of claims, to be paid in order of priority:
For example, if a company goes bankrupt and owes money to its employees, the employees' wage claims would have priority over other unsecured claims.