In a Bankruptcy Proceeding, Which of the Following Debts Will

question 70

Multiple Choice

In a bankruptcy proceeding, which of the following debts will have the highest creditor priority?

• A) Government tax claims.
• B) Employees who are owed wages earned within 90 days of filing.
• C) Consumers who have paid deposits or prepayments for undelivered goods or services up to $1,800 per consumer.
• D) Creditors with claims in the ordinary course of business incurred after the bankruptcy was filed.
• E) General creditors.

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Definitions:

Cotton Goods

Products, especially textiles, made from cotton, an important material in the global textile industry.

Luxury Goods

Expensive, non-essential items and services that convey a sense of status or enjoyment beyond basic needs.

Enfranchisement of Women

The process of granting women the right to vote and participate fully in political life, typically achieved through legislative changes.

Political Rights

These are rights that allow individuals to participate in the political life of their community or nation, including voting and standing for office.