sentences:  The priority of right to collect the debt is important when a debtor owes more than one creditor but has assets of insufficient value to pay them all in full at the time of a default.Except in bankruptcy proceedings, the creditor with the first priority for collection will generally have the first claim on the debtor's assets for its debt and the creditors whose rights are subordinate will thus have fewer assets to satisfy their claims.Subordination can take place by operation of law or by agreement among the creditors.