(a) Upon the final hearing, the court, after deducting the cost and paying all public taxes, shall order the proceeds to be distributed among the creditors in the order and with the following preferences:

(1) The salaries of employees earned within three (3) months and all laborers' wages shall be paid first;

(2) After making the payments provided for in subdivision (a)(1) of this section, the funds in hand shall be applied pro rata towards the payment of the claims of all creditors who shall, before the making of the order of distribution, file in the court a stipulation for the use of the debtor to the effect that in consideration of the preference to be thus obtained, the debtor shall be acquitted of all further liability in personam to such creditor; and

(3) After making the payments provided for in subdivision (a)(2) of this section, the remainder of the funds, if any, shall be paid and distributed equally among the other creditors.

(b) If the action or proceeding is commenced within twelve (12) months from the filing of the stipulation provided for in subdivision (a)(2) of this section, the stipulation shall not be held or construed to affect or impair the right of the creditor to collect the remainder of his or her claim, if any, from any other person who is bound to him or her therefor, or to enforce any other security he or she may have for his or her claim, nor shall the stipulation be held to constitute a bar to any action brought or proceeding taken against the debtor for the balance of his or her debt, if the creditor proves that the debtor was guilty of fraud in obtaining the stipulation either by withholding his or her property from the receiver or otherwise.

(c) Any creditor having a lien upon any of the debtor's property for his or her claim shall be required to make a proper deduction for the value of his or her security before participating in the distribution of the general assets of the debtor.

(d) Except as to the creditors of the first class, as enumerated in subsection (a) of this section, no order for the distribution of the funds among the creditors shall be made within ninety (90) days from the first day of the publication of the order provided for in § 16-117-303.