Superpriority liens

Last Updated: Jun 7, 2019

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Superpriority liens have priority senior to all current or future liens on the same asset or property (other than those subject to ultrapriority liens) and thus entitle creditors with superpriority status to receive payment before all junior creditors. 

Superpriority liens arise in bankruptcy, and superpriority status is generally provided to attorneys and bankruptcy trustees whose services are necessary to facilitate the bankruptcy process.

Superiority status is sometimes granted to claims that arise after the filing of a bankruptcy petition, where credit is extended to the debtor to provide financing during the bankruptcy, such as for Debtor-in-Possession (DIP) Financing.