When dealing with creditors in insolvency situations, it is vital to remember the order of priority. Who ranks above whom? Where does the bank and HMRC rank? If the bank has security, do employees rank ahead of them? These are all commonly asked questions that creditors ask.
The simplest way to answer these questions is to imagine creditor ranking as a ladder. Here’s a simple yet useful infographic from Company Rescue that ranks the importance of creditors (i.e. those who get paid first) in an insolvency case: