Priority

Explanation: The order in which claims must be paid from the bankruptcy estate. Priority is established by the Bankruptcy Code, and higher-priority claims must be paid in full before lower-priority claims can be paid.

Background: Claims are paid in this order: 1) Administration Costs, 2) Priority Claims, 3) General, Unsecured Claims. Secured claims are paid from the money raised by liquidating the collateral that secured the claim.