Creditor payments during dissolution are made in accordance with the contract and the Civil Code's rules on priority of credits.

• A. True
• B. False
• C. Not specified
• D. Depends

Answer: (A)

During dissolution, the assets are liquidated and paid out to creditors according to two guiding sources: any contractual agreements between creditors and the statutory priority rules in the Civil Code. The contract can shape how proceeds are shared among creditors who have agreed to a particular order or arrangement, but it cannot override mandatory priorities set by law. The Civil Code sets the actual ranking of claims, so payments flow first to secured creditors (those with liens or mortgages), then to preferred claims like wages and taxes, and only after these priorities are satisfied do unsecured creditors receive payment. Any remaining funds would go to shareholders. This structure ensures the most legally protected or essential claims are satisfied first, while contracts can modulate certain arrangements only within the allowable legal framework. Therefore, creditor payments during dissolution are indeed made in accordance with both contract terms and the Civil Code’s priority rules.