statutory priority

Statutory priority refers to the legal order in which claims or debts are paid from an individual's or company's assets, as defined by law. When someone owes money and their assets are insufficient to cover all debts, the law specifies which creditors are paid first. For example, certain debts like taxes, employee wages, or secured loans often have priority over unsecured debts like credit card bills. This system helps ensure that the most critical or legally protected claims are settled before others, maintaining fairness and order in financial proceedings.