equitable subordination

noun

Legal Definition of equitable subordination

: the subordination of a creditor's claim in a bankruptcy proceeding imposed by the court when the creditor has an unfair advantage over other creditors because of improper conduct or an advantageous position (as of a corporate insider)

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“Equitable subordination.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/equitable%20subordination. Accessed 7 Mar. 2021.

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