Question
On June 1, Riviera was involuntarily petitioned into bankruptcy. On June 30, a trustee in bankruptcy...
On June 1, Riviera was involuntarily petitioned into bankruptcy. On June 30, a trustee in bankruptcy was appointed and an order for relief was entered. The claims and expenses against Riviera’s estate are as follows:
Claims and Expenses
*Fees earned by bankruptcy trustee $15,000
*Fees earned by attorney for bankruptcy estate $10,000
*Claims by secured creditors $5,000
*Claims by Riviera’s employees for wages earned within
180 days of filing of the bankruptcy petition $20,000
*Claims by general unsecured creditors $15,000
Assume there is $41,000 in assets available for distribution to creditors. How will the assets be allocated to the above creditors?
Subject: Business Law
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