Preferential Creditor

is whole amount due paid to Preferential creditor or they are paid proportionately
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Quick Summary
This discussion clarifies the payment hierarchy during company liquidation. It questions whether preferential creditors, such as employees owed money, receive their full due or if payments are distributed proportionally. The order typically starts with secured creditors, followed by unsecured creditors, employees, and finally shareholders if funds remain.

When a company goes for liquidation
then the first is the secured creditor amount paid fully
then comes the unsecured creditors
then the employees who owed money
then comes the shareholders money if money is left there by
Who among the above are preferential creditors
1st one comes under it with the company employees

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