Defined in Schedule 6 of The Insolvency Act 1986. Has priority when a liquidator, administrative receiver or trustee distributes funds.
A creditor in bankruptcy proceedings who is entitled to receive certain payments in priority to other unsecured creditors. These creditors include occupational pension schemes and employees
a creditor who is entitled to receive certain payments in priority to other unsecured creditors. Such creditors include government departments, occupational pension schemes and employees.
In a winding up, those creditors who must be paid first, namely rates, taxes, wages of servants or clerk, DHSS payments etc.
A creditor who is entitled to receive payment prior to other unsecured creditors.
Defined in Schedule 6 of The Insolvency Act 1986. Has priority when funds are distributed by a liquidator, administrative receiver or trustee in bankruptcy.
A class of creditor who benefits from a statutory priority over floating charge and unsecured creditors. Preferential creditors are predominantly employees of the company or of an individual. Prior to 15th September 2003, the Inland Revenue, HM Customs & Excise and the DSS enjoyed preferential status in respect of certain claims.
A creditor who is entitled to receive certain payments in priority to floating charge holders and other unsecured creditors. These creditors include occupational pension schemes and employees.
Preferential creditors have prior rights, under the Insolvency Act 1986 to payment from the assets available for creditors in the event of an insolvency (e.g. the Inland Revenue, VAT or employees' wages). They rank after fixed charges but before floating charges and ordinary creditors. The complete list is shown in Schedule 6 of the Insolvency Act 1986.
A preferential creditor (in some jurisdictions called a preferred creditor) is a creditor who receives a preferential right to payment upon the debtor's bankruptcy under applicable insolvency laws.