Preferred Creditor
Content
Definition
A Preferred Creditor is a creditor receiving priority over other creditors in terms of the payment from a debtor, especially in bankruptcy proceedings.
Usage and Context
A preferred creditor has priority over others in receiving payments from a debtor.
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.
Benefits
A preferred creditor has priority over other creditors in receiving payments from a debtor, especially in bankruptcy.
Conclusion
Preferred Creditor has priority over others in receiving payments from a debtor.
