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priority claim
priority claim definition - finance
An
unsecured claim (one that is not
backed by collateral) that is entitled to receive priority over other unsecured
claims in a bankruptcy proceeding. Priority claims may include administrative
expenses; claims arising in the
ordinary course of the debtorÂ’s business after the filing of an involuntary
petition and before the entry of the order for relief; certain wage, salary, or
commission claims; certain contributions to an employee benefit plan; certain
claims of farmers and fishermen; certain consumer claims of up to $900; and
certain unsecured tax claims.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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