The Rule Governing Hierarchical Order in Which Claim Payments Must

question 11

Multiple Choice

The rule governing hierarchical order in which claim payments must be made during a bankruptcy is known as the:

• A)cram-down procedure
• B)absolute priority rule
• C)prepackaged bankruptcy rule
• D)involuntary bankruptcy rule

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Definitions:

Debt Payments

Monetary amounts paid at regular intervals to reduce or settle a debt.

Bankruptcy Proceedings

The judicial procedure that allows people or organizations that are unable to pay their debts to obtain relief from part or all of their financial obligations.

Farmer

An individual engaged in agriculture, raising living organisms for food or raw materials.

Refuses to Comply

The act of not agreeing to follow a request, rule, or order.