Bankruptcy Lawyer St George Utah

Bankruptcy Lawyer St George UT

Ascent Law LLC (801) 676-5506 Free Consultation

Bankruptcy Attorney St George Utah

When a bank goes bankrupt, who gets priority for payback: its bondholders or depositors?

Debt holders with equity security interests are the first priority during bankruptcy. Next come Non-Priority Unsecured claims. Those with common stock, on the other hand, have the least priority during bankruptcy. While common stock gives the owner the most control over the company, it has the lowest priority during bankruptcy.

Equity security interest holders are the priority during bankruptcy

When a Debtor files for bankruptcy, equity security interest holders are the first to be considered. Equity security interest holders include corporations, limited partners, and other entities that have stock equity or ownership interests in a Debtor. They can also include persons who have reserved the right to buy, sell, or otherwise acquire new warrants.

However, the priority system does not work the same way in unsecured creditors. For example, non-priority unsecured creditors are given only a partial claim value and are not given first dibs on the distribution of assets from the bankruptcy estate. Instead, they can receive an installment payment plan, a promissory note, or even equity in the company’s reorganized company.

Non-Priority Unsecured claims are next in line

Unsecured creditors are those whose claims are not secured by any asset. As such, they have the lowest priority. These creditors will receive a pro rata distribution after administrative costs. They are also often entitled to some form of payment plan or even equity in the reorganized company.

When a company files for bankruptcy, it distributes its assets to creditors in order of priority. Security creditors are paid first. Next, priority unsecured creditors follow. Then, the remaining creditors are paid. However, there are exceptions to this rule that can change the order of priority and affect the value of a claim.

Pro rata distribution works among similarly situated creditors in the same class

Pro rata distribution is a legal concept that divides a bankruptcy estate among similarly situated creditors in the same category. Typically, the pro rata distribution applies to general unsecured creditors and equity shareholders, the lowest classes under the bankruptcy priority scheme. Under this concept, creditors that qualify for the pro rata distribution receive a percentage of the remaining assets, which is proportional to the size of each creditor’s bankruptcy claim. However, if the bankruptcy estate cannot satisfy all of the creditors, the pro rata distribution may be insufficient to cover all of the creditors’ debts.

Under bankruptcy law, creditors do not receive an equal share of the estate, but creditors that have priority status, and security interests are generally entitled to full payment. This policy protects creditors and preserves equal treatment among unsecured creditors. In addition, bankruptcy law imposes special restrictions that prevent the debtor from giving any one credit or more than another. These restrictions also prevent the disbursement of assets prior to bankruptcy filing.

Waterfall payment structure is a priority between Depositors and Bondholders during bankruptcy.

A waterfall payment structure is a system that ensures the highest priority debts are paid first. This lowers the debtor’s risk of becoming insolvent and gives him access to cash. However, the structure is not always fair for lower priority claims.

The waterfall payment structure is a part of the Insolvency and Bankruptcy Code, which requires payment to first be made to secured creditors. The remaining funds are distributed in proportion to the amount of debt owed to each class of creditors. The majority of lenders agree to this distribution plan, though there are some differences. For example, some lenders believe that small investors are entitled to a larger share of the funds than larger investors.

If you have any questions, you can get a free consultation with Ascent Law LLC:

Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506

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Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506
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St. George, Utah

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St. George, Utah
City of St. George
Overlook of downtown St. George and adjacent Pine Valley Mountains

Overlook of downtown St. George and adjacent Pine Valley Mountains
Flag of St. George, Utah

Official logo of St. George, Utah


Utah’s Dixie, (the) STG
Location within Washington County

Location within Washington County
St. George is located in Utah

St. George
St. George
Location within Utah

Coordinates: 37°06′15″N 113°35′03″WCoordinates37°06′15″N 113°35′03″W[1]
Country United States
State Utah
County Washington
Settled 1861
Incorporated 1862
Named for George A. Smith

 • Mayor Michelle Randall
 • City Manager Adam Lenhard

 • City 78.47 sq mi (203.22 km2)
 • Land 78.46 sq mi (203.22 km2)
 • Water 0.00 sq mi (0.01 km2)  0.72%

2,700 ft (800 m)

 • City 95,342
 • Rank 1st in Washington County
7th in Utah
 • Density 1,215.17/sq mi (469.16/km2)
 • Metro

180,279 (US: 239th)
 • Metro density 1,310/sq mi (510/km2)
Demonym St. Georgian
Time zone UTC−7 (Mountain)
 • Summer (DST) UTC−6 (Mountain)
ZIP Code
84770–84771, 84790–84791
Area code 435
FIPS ID 49-65330
GNIS feature ID 1455098[1]

St. George is a city in and the county seat of Washington County, Utah, United States. Located in southwestern Utah on the Arizona border, it is the principal city of the St. George Metropolitan Statistical Area (MSA). The city lies in the northeasternmost part of the Mojave Desert, adjacent to the Pine Valley Mountains and near the convergence of three distinct geologic areas and ecoregions: the Mojave DesertColorado Plateau, and the Great Basin.[4] The city is 118 miles (190 km) northeast of Las VegasNevada, and 300 miles (480 km) south-southwest of Salt Lake CityUtah, on Interstate 15.

As of the 2020 U.S Census, the city had a population of 95,342, with the overall MSA having an estimated population of 180,279.[5][6] St. George is the seventh-largest city in Utah and most populous city in the state outside of the Wasatch Front.

The city was settled in 1861 as a cotton mission, earning it the nickname “Dixie“. While the crop never became a successful commodity, the area steadily grew in population. Between 2000 and 2005, St. George emerged as the fastest growing metropolitan area in the United States.[7] Today, the St. George region is well known for its year-round outdoor recreation and proximity to several state parksZion National Park and The Grand CanyonUtah Tech University is located in St. George and is an NCAA Division I institution.

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