Issue link: https://mbozikis.ufcontent.com/i/1422521
73 claims. Section 507 of the Bankruptcy Code outlines ten types of such priority claims. All claims in a higher priority category are satisfied in full before payment is made to lower priority categories if the priorities are strictly enforced. If an unsecured claim is not covered by one of the priorities, the claim holder must wait until all priority claim holders are paid in full before it can receive any payment. Normally, courts may not alter the priority scheme, but creditors may agree in a plan of reorganization to different treatment (subject to the requirements of Chapter 11). Moreover, subordination provisions and intercreditor agreements, which modify the order of payment of claims, are enforceable with respect to the payment of claims. 11 U.S.C. ยง 510(a) (more fully discussed in Chapter V.D.2.e.). The Bankruptcy Code also provides that some claims may be given super priority treatment. For instance, according to Section 364(c), a lender that provides debtor-in-possession financing (or "DIP Financing"), discussed in greater detail in Chapter V.E.4., will receive "super priority" treatment and will be entitled to payment before other administrative expenses. The Bankruptcy Code provides for priority claims to be paid in the following order: (i) claims for certain domestic support obligations of an individual debtor; (ii) claims for allowed administrative expenses under Section 503(b); 36 (iii) ordinary course claims that arose between the filing of an involuntary petition and the entry of the order for relief; (iv) claims for wages, salaries, or commissions, including vacation, severance, and sick leave pay, earned by an 36 For a complete discussion of Administrative Expense Claims, see Chapter V.D.2.a.