Which One of the Following Will Generally Receive the Highest

question 64

Multiple Choice

Which one of the following will generally receive the highest priority in a bankruptcy liquidation, assuming the absolute priority rule is followed?

• A)Claims by unsecured creditors
• B)Employee wages
• C)Government tax claims
• D)Contributions to employee retirement plans
• E)Bankruptcy administrative expenses

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Definitions:

Abatement

Abatement refers to the reduction, decrease, or removal of something, often used in legal contexts relating to the diminishing or cessation of nuisance or the reduction of a monetary obligation.

Alleged

Claimed to be the case or have taken place, although there is no proof.

Livery of Seisin

A historic legal ceremony transferring possession of property from a seller to a buyer.

Delivery of Keys

The act of physically handing over the keys of a property, symbolizing the transfer of possession or control from one party to another, often occurring in real estate transactions.