Priority Claim [Bankruptcy] Law and Legal Definition
Priority with reference to claim means the order in which a debtor should pay an unsecured claim. Priority claim means that unsecured claim which must be paid first ahead of the other unsecured claims in a bankruptcy proceeding. Examples of priority claim includes unpaid wages, spousal or child support, administrative expenses, certain contributions to an employee benefit plan ,certain claims of farmers and fishermen, certain consumer claims, certain unsecured tax claims and certain wage, salary, or commission claims. Priority claims must be paid before paying other general unsecured claims.
