Preferred Creditor
A Preferred Creditor is a creditor receiving priority over other creditors in terms of the payment from a debtor, especially in bankruptcy proceedings.
Benefits
A preferred creditor has priority over other creditors in receiving payments from a debtor, especially in bankruptcy.
Frequently Asked Questions
Who are the priority creditors in bankruptcy?
Priority creditors in bankruptcy are preferred creditors who receive payment before other creditors.
What are the priority of creditors in insolvency?
In insolvency, secured creditors are paid first, followed by unsecured creditors, then shareholders.
What is priority claim in bankruptcy?
A priority claim in bankruptcy is a claim that is paid before other claims, such as secured creditors.
Key Takeaway
Preferred Creditor has priority over others in receiving payments from a debtor.