Marshalling Law and Legal Definition

“Marshalling is an equitable doctrine which is based upon the principle that "a creditor having two funds to satisfy his debt may not, by his application of them to his demand, defeats another creditor, who may resort to only one of the funds." Dixon v. Am. Cmty. Bank & Trust (In re Gluth Bros. Constr.), 2009 Bankr. LEXIS 3857 (Bankr. N.D. Ill. Nov. 25, 2009)