preferential debts

preferential debts
categories of debts listed in the Insolvency Act 1986 and having priority to any claims to principal or interest under a debenture.

Collins dictionary of law. . 2001.

preferential debts
On insolvency, debts ranking equally amongst themselves after the payment of expenses of the winding up and fixed charges and/or mortgages, and in priority to floating charges and unsecured creditors.
On 15 September 2003, the Enterprise Act 2002 removed the preferential status of certain Crown debts such as debts due to HM Revenue & Customs and social security contributions but preserved the preferential status of certain employee claims and contributions to occupational pension schemes.
For further information, see the Insolvency Service website: .
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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