N.Y. Debtor & Creditor Law § 189

§ 189. Distribution of moneys. They shall distribute the residue of\nthe moneys in their hands, among all those who shall have exhibited\ntheir claims as creditors, and whose debts shall have been ascertained,\nin proportion to their respective demands, and without giving any\npreference to debts due on specialties, as follows:\n 1. In proceedings under the third and fourth articles of this chapter,\namong those who were creditors at the time of the execution of the\nassignment by the insolvent;\n 2. In proceedings under the fifth article, among those creditors, at\nwhose suit the debtor was imprisoned on execution at the time of his\ndischarge.\n