Creditor Priority — Structural Reference

Identity

This domain defines creditor priority as a structural ordering model describing how claims may be ranked for distribution in insolvency and liquidation contexts. It stabilizes terminology describing creditor ranking structures across insolvency and liquidation contexts.

This reference is not legal advice, not financial advice, and not jurisdiction-specific guidance. It does not assess cases, recovery outcomes, enforcement strategies, or allocation probabilities.

Scope Boundary

Included

• Claim classes and structural rank distinctions
• Conceptual ordering: secured → preferred → unsecured → subordinated
• Priority overrides (statutory or contractual)
• Structural waterfall logic at a generic level
• Terminology suitable for cross-domain modeling

Excluded

• Jurisdiction-specific filing requirements or statutory interpretation
• Case assessment or recovery forecasting
• Valuation guidance or credit strategy
• Legal representation or advisory positioning

Reference Model

Phase 1 — Secured Position

Claims supported by collateral or security interests. Structural priority derives from asset-backed position, not from predictive recovery assumptions.

Phase 2 — Statutory or Preferred Claims

Claims granted preferential treatment by law (e.g., certain wage or tax claims), modeled as structural overrides within the hierarchy.

Phase 3 — General Unsecured Claims

Claims without collateral and without statutory preference. Position defined purely structurally.

Phase 4 — Subordinated Positions

Claims ranked contractually or statutorily below other unsecured claims. Structural demotion mechanism only.

Interpretation boundary: This model provides vocabulary and structural description only. It does not determine application in real cases.

Method & Sources

Method discipline is defined in /method/. Source anchoring is documented in /sources/.

Status & Maintenance

Status: Public structural reference, versioned through changelog control.

Change discipline: material changes only (definition shifts, structural corrections, institutional updates). Minor editorial adjustments are not logged. See /changelog/.

Contact (corrections or material updates): contact[at]creditorpriority.com