What is a priority claim?

A priority claim is a legal concept in New Hampshire creditors rights law that gives certain creditors the right to be paid first from a bankruptcy estate. Generally, priority claimants are creditors that represent certain classes of creditors, such as governmental agencies and wage earners. Such creditors are entitled to be paid in full or in part before other creditors may receive their due. Priority claims must be paid even when the bankruptcy estate lacks sufficient funds to pay all debts in full. Priority claims are usually for specific types of debt, such as taxes, child support, alimony, worker’s compensation, or wages due to employees. Priority claims are given the top priority in receiving payment and must be paid in full before other creditors can receive anything. In some cases, priority claimants have the right to file claims after the case has already been closed. This means the claim will still be paid even though the estate may not have any more funds available. Priority claims are given precedence over non-priority claims in the court system. This means that priority claims must be satisfied before non-priority claims can even be considered. This ensures that certain creditors are given priority to ensure that they receive the funds they are entitled to. Additionally, it helps protect these creditors from potentially unfair practices by other parties.

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What is a priority claim?

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