Order of Relief

Order of Relief refers to a legal framework in bankruptcy proceedings that grants specific rights to creditors, particularly when a debtor is undergoing financial distress. It outlines how debts are prioritized and repaid in the event of liquidation or reorganization. In essence, it establishes the sequence in which creditors will be paid, protecting certain claims over others, and ensures a systematic approach to resolving the debtor's obligations while maximizing the value available to all parties involved. This process is crucial for maintaining fairness and order during complex financial challenges.