In recent changes in bankruptcy legislation, one of the most controversial subjects has been the privileges granted to creditors in bankruptcy proceedings. Little attention, however, has been paid to the privileges of the Public Treasury as a creditor. In the imminent reforms to Spanish bankruptcy law, the advantages accorded to the Public Treasury will be reduced, in line with changes in other countries. This article analyses, from an economic viewpoint, the arguments for and against such privileges. The analysis leads us to the conclusion that there are reasons of efficiency to support legislations that consider the Government as an ordinary creditor.