Social Sciences and the Law

What are preferred creditors?

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When a person or corporation has declared or been adjudged bankrupt, preferred creditors (e.g., unpaid employees, or the federal government) are paid in full, and the other creditors share the proceeds of remaining assets.

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Similar questions: Who shares the proceeds of the remaining assets once preferred creditors are paid in full in the case of bankruptcy? Who gets paid in full when bankruptcy is declared? [ Hide these questions ]

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