REG Bankruptcy · Updated November 2026
Bankruptcy Priority Claims: Who Gets Paid Before General Unsecured Creditors?
Not all unsecured claims stand in the same line.
Secured claims
Secured creditors generally look first to collateral.
Priority unsecured
Certain statutory claims receive priority ahead of ordinary unsecured debt.
General unsecured
Ordinary nonpriority unsecured debts rank below priority claims.
Exam strategy
Classify secured, priority unsecured, or general unsecured before distributing.
The takeaway
Priority unsecured claims are paid ahead of general unsecured claims.
Related Summit resources
FAQ
Are all unsecured claims equal?
No.
Do secured creditors rely primarily on collateral?
Yes.
What should you classify first?
The type of claim.