Which type of creditor holds a lower priority in claims after a bankruptcy?

Unsecured creditors hold a lower priority in claims after a bankruptcy, which makes this the correct answer. In the context of bankruptcy, the priority of claims is crucial for determining the order in which creditors are paid from the assets of the bankrupt entity.

Priority creditors, including secured creditors and certain kinds of unsecured creditors like those holding domestic support obligations, are paid first. Secured creditors have collateral backing their loans, which gives them a claim to specific assets in case of bankruptcy, thus placing them higher in priority for repayment.

Government creditors often fall into various categories, such as tax claims, which can have specific prioritization rules that might elevate their standing, depending on the type of debt owed.

In contrast, unsecured creditors do not have specific rights to any collateral, which inherently puts them in a position where they are paid after all secured creditors and priority claims have been satisfied. This low priority means that they may receive only a portion of what they are owed, or potentially nothing at all if the bankruptcy estate's assets are insufficient to cover higher-priority claims.