WHAT IS THE PRIORITY OF MY UNSECURED CLAIM?
Priority of claims depends on state law, but the various priority schemes generally follow this hierarchy: • Secured creditors (with valid, perfected liens on assets of the business) • Claims of any agency of the federal government (including taxes) • Administrative costs of the Assignee • Wages and benefits due employees accrued and not paid within a specific time period before the assignment was made, usually 90 days • State and local taxes • General unsecured creditor claims • Shareholder claims for equity or stock in the business Note that each tier must be paid in full before the tier below it receives anything. For example, if there are insufficient funds to satisfy secured claims in full, secured creditors get what funds there are and no other creditors receive anything. If secured creditors are paid in full and there is, say, $25,000 leftover and the federal government has claims totaling $50,000, then those claims will be paid at 50 cents on the dollar and creditors in the rem
