A Primer For Construction Bankruptcies
Under Chapter 7, upon the filing of a bankruptcy petition, a trustee is appointed to gather and sell all of the debtor's assets as quickly as possible. Once the trustee liquidates all of the assets, it must pay creditors in accordance with the priority scheme mandated by the Bankruptcy Code:
Claims secured by collateral; Claims entitled to priority or administrative expense priority treatment such as certain tax claims and...
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