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The Federal Priority Act: How ‘secure’ is a secured creditor if the debtor is subject to a federal claim or investigation?

Claire Schenk October 10, 2018
two arms carving up piles of money - one is Uncle Sam

Under the Federal Priority Act, the government gets paid first if it has an outstanding claim when businesses or individuals become insolvent. But a review of relevant case law suggests that creditors who hold a prior perfected interest in a debtor’s real or personal property may still have a fighting chance in an ensuing priority battle. READ MORE