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by iamflimflam1·3mo ago·view on hn ↗
I’m no expert, but a bit of googling tells us.

The laws around bankruptcy define the priority of who gets paid and in what order:

- Secured Claims

- Unsecured Priority Claims

- Unsecured Non-Priority Claims (General Unsecured)

- Equity Security Interests

Each layer has to be paid in full before the next layer.

Unsecured Priority Claims - this includes customers who have paid for services.

1 comments
Also with secured claims. What are they secured against? That is what is the collateral defined. If it is not cash... Well they will get their claims when collateral is liquidated.