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(1) Debts entitled to payment before general creditors in bankruptcy.

(2) The right held by a creditor by virtue of a lien or security to be satisfied out of the debtor’s assets before other creditors.

(3) Those things that must be dealt with before others.

The Bankruptcy Code establishes the order in which claims are paid from the bankruptcy estate. All claims in a higher priority must be paid in full before claims with a lower priority receive anything. All claims with the same priority share pro rata. Claims are paid in this order: 1) costs of administration 2) priority claims and 3) general unsecured claims. Secured claims are paid from the proceeds of liquidating the collateral which secured the claim.