equitable subordination
- A situation in a bankruptcy case where the court devalues the claim of a creditor because they performed unfair actions or were in a favorable position that provided them with an unjust advantage over other creditors
- The lawyer demanded equitable subordination to ensure that the corrupt creditor did not get undue advantage over other creditors.
- Equitable subordination is often considered when a creditor uses undue influence to have an unfair edge in a bankruptcy proceeding.
- The judge invoked the principle of equitable subordination to bring fairness to the bankruptcy case.
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