The rule that senior claims must be fully satisfied before junior claims upon liquidation of a company. The general priority is 1) liquidation administrative expense, 2) unsecured claims arising after filing for bankruptcy 3) wages and salaries earned within 90 days of filing, 4) contributions to employee benefit plans arising within 180 days before filing date 5) consumer claims, 6) tax claims, 7) secured and unsecured creditors’ claims, 8) preferred stockholders’ claims, 9) common stockholders’ claims.