Superpriority
Encyclopedia
In United States bankruptcy law
, the term superpriority confers the status of a claim being superior to that of other claims. Ultrapriority (summapriority) claims will take precedence over superpriority claims. Superpriority claims can be either secured or unsecured.
Lenders and other creditors that extend credit or provide financing to a debtor during the course of a chapter 11 case do so with the expectation that their claims will be entitled to elevated priority of payment. Even though such claims are generally entitled to certain priority status as "administrative claims," creditors seeking more elevated priorities must ensure that they comply with the Bankruptcy Code’s requirements for obtaining this status, so that their claims cannot be undermined due to later developments in the bankruptcy.
Chapter 7
administrative expenses are entitled to priority over Chapter 11
claims granted superpriority status under (b).
Bankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...
, the term superpriority confers the status of a claim being superior to that of other claims. Ultrapriority (summapriority) claims will take precedence over superpriority claims. Superpriority claims can be either secured or unsecured.
Lenders and other creditors that extend credit or provide financing to a debtor during the course of a chapter 11 case do so with the expectation that their claims will be entitled to elevated priority of payment. Even though such claims are generally entitled to certain priority status as "administrative claims," creditors seeking more elevated priorities must ensure that they comply with the Bankruptcy Code’s requirements for obtaining this status, so that their claims cannot be undermined due to later developments in the bankruptcy.
Chapter 7
Chapter 7, Title 11, United States Code
Chapter 7 of the Title 11 of the United States Code governs the process of liquidation under the bankruptcy laws of the United States...
administrative expenses are entitled to priority over Chapter 11
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
claims granted superpriority status under (b).