Definitions for "PREFERENTIAL CREDITOR"
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.