In a Chapter 7 Liquidation Proceeding, the Claims of Creditors

question 32

Multiple Choice

In a Chapter 7 liquidation proceeding, the claims of creditors are paid in which of the following order?

• A) Priority claims take precedence over claims made by secured and unsecured creditors.
• B) The claims of secured creditors are satisfied first, followed by priority claims, and lastly claims made by unsecured creditors.
• C) Older claims are given priority over more recent claims.
• D) The claims of secured creditors are satisfied first, followed by unsecured creditors, and lastly priority claims.

---

Definitions:

Rational Emotive Behavior Therapy (REBT)

A form of cognitive behavioral therapy that identifies irrational beliefs, challenges their accuracy, and replaces them with more rational responses.

Cognitive Restructuring

A psychological technique aimed at identifying and changing irrational or maladaptive thoughts, beliefs, and attitudes.

Frontal Lobotomy

A surgical procedure that involves severing connections in the brain's prefrontal lobe, historically used to treat mental disorders but now largely discredited.

Psychotropic Medications

Drugs that affect the mind, emotions, and behaviors by altering the chemistry of the brain.