In
United States bankruptcy law
In the United States, bankruptcy is largely governed by federal law, commonly referred to as the "Bankruptcy Code" ("Code"). The United States Constitution (Article 1, Section 8, Clause 4) authorizes Congress to enact "uniform Laws on the subje ...
, 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
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wheth ...
claims granted superpriority status under (b).
United States bankruptcy law
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