Privileged Debt Law and Legal Definition
Privileged debt means a secured debt that has priority over other debts on insolvency of the debtor. A senior debt is a privileged debt and it takes priority over that of subordinated debts. The debts which are privileged on all the movables in general are funeral charges, law charges, and charges, of whatever nature, occasioned by the last sickness, concurrently among those to whom they are due.[ Pelican State Associates, Inc. v. Winder, 253 La. 697, 701 (La. 1969)].