Creditors: Who gets What?

Описание: How are creditors repaid when a company is liquidated? So when a company enters into a voluntary or compulsory liquidation procedure there are several factors that determine how much money a creditor is likely to receive and whether any debts are likely to be written off.

The first one is the value of company assets and of course how easy these assets are to actually sell and secondly is the liquidators fee which will include advising the directors settling legal disputes collecting payments owed to the company investigating the conduct of directors valuing and selling the assets and of course distributing the funds to creditors the liquidators fees are paid from the sale of company assets thirdly is the repayment hierarchy now there is a defined hierarchy that determines the order that creditors are actually paid there are three main classes of creditor firstly secured creditors secondly preferential creditors and thirdly unsecured creditors now each class of creditor has to be paid in full before the liquidator can move on to the next class and the unsecured creditors are at the bottom of the payment hierarchy so by the time they're paid there's often very little to go around unsecured creditors typically only receive a proportion of the money they are owed and any remaining debts are written off.

So if you have a company that needs help with debt management reach out to me or the Real Business Rescue Team where you can find quality help and advice.

https://www.realbusinessrescue.co.uk

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