Economy, asked by monsterliitle, 4 months ago

secured creditors are paid out of the respective​

Answers

Answered by FoXy84
1

A fully secured creditor is a lender who secures his debt with collateral, such as a mortgage or a lien on personal property. If you default on debt you owe to a fully secured creditor, the creditor can take possession of the property securing the loan and sell it to pay the difference

During liquidation one of the key issues for both the liquidator and concerned parties is what will happen to proceeds, and the order of priority of debt.

...

The priority of payment in liquidation are as follows:

The costs of liquidation.

Secured creditors.

Priority unsecured creditors (employees)

Unsecured creditors..

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