Prelación

Prelación refers to the legal principle that establishes the order of priority among competing claims or rights against an asset or a debtor. This concept is particularly relevant in insolvency proceedings, secured transactions, and estate administration. When multiple parties have claims on the same property or against the same individual or entity, prelación dictates which claim will be satisfied first.

The most common distinction in prelación is between secured and unsecured creditors. Secured creditors, those who hold collateral or a lien on specific assets, generally have priority over unsecured creditors. This means that if a debtor defaults or goes bankrupt, the secured creditor has the right to seize and sell the collateral to satisfy their debt before any funds are distributed to unsecured creditors.

Within secured creditors, there can also be different levels of priority, often determined by the order in which their security interests were perfected or registered. For example, the first party to register a mortgage on a property typically has priority over subsequent mortgage holders. Similarly, in bankruptcy, certain governmental claims, such as taxes, may be given preferential treatment even over some secured claims.

Unsecured creditors, such as suppliers or those with judgment debts, generally stand last in line and may receive only a portion of their debt, if anything, after all prior claims have been satisfied. The specific rules governing prelación vary significantly depending on the jurisdiction and the type of claim involved. Understanding these priority rules is crucial for creditors to protect their interests and for debtors to manage their obligations.