Equitable subordination

{
  "id": "MLC-T-LAW-001901",
  "term": "Equitable subordination",
  "field": "Law",
  "definition": "A bankruptcy principle allowing a court to reorder the priority of claims against a debtor, placing an otherwise senior claim behind junior claims. This doctrine applies when a creditor has engaged in inequitable conduct that harmed other creditors or provided an unfair advantage. It is typically invoked in cases involving insider creditors or those who have abused their control over the debtor.",
  "url": "https://mlchart.com/terminology/law/equitable-subordination/"
}