What is a Subordination Agreement Key Financial Insights

1388 reads · Last updated: January 18, 2026

A subordination agreement is a legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor. The priority of debts can become extremely important when a debtor defaults on their payments or declares bankruptcy. The higher a debt's priority, the more likely it is to be repaid, at least in part.

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