Secured vs unsecured debt at the time of Bankruptcy

Solution Preview

What is the priority of the various types of secured and unsecured debt in bankruptcy?

Bankruptcy means the inability of the person to pay her creditors or when the assets are less than the liabilities of the person and she cannot pay her liabilities from the proceeds of assets.
At the time of bankruptcy, the person has to pay her various types of creditors viz., preference creditors, secured creditors and unsecured creditors.

A secured ...