- 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. W. J. Stewart. 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. www.practicallaw.com. 2010.
Look at other dictionaries:
preferential debts — In bankruptcy, those debts which are payable in preference to all others; as, wages of employees and administrative costs. Such debts are classified according to priority of claim. See Bankruptcy Code No. 507 … Black's law dictionary
preferential claim — See preferential debts … Black's law dictionary
preferential debt — A debt that will be repaid in preference to other debts. See: preferential creditor … Accounting dictionary
preferential debt — A debt that will be repaid in preference to other debts. See preferential creditor … Big dictionary of business and management
privileged debts — Those which an executor or administrator, trustee in bankruptcy, and the like, may pay in preference to others; such as funeral expenses, servants wages, and doctors bills during last sickness, etc. See also preferential debts … Black's law dictionary
debt — n [Old French dette, ultimately from Latin debita, plural of debitum debt, from neuter of debitus, past participle of debere to owe] 1: something owed: as a: a specific sum of money or a performance due another esp. by agreement (as a loan… … Law dictionary
preferred — Possessing or accorded a priority, advantage, or privilege. Generally denoting a prior or superior claim or right of payment as against another thing of the same kind or class; e.g. creditor with perfected security interest @ preferred creditor… … Black's law dictionary
mortgage — mort·gage 1 / mȯr gij/ n [Anglo French, from Old French, from mort dead (from Latin mortuus ) + gage security] 1 a: a conveyance of title to property that is given to secure an obligation (as a debt) and that is defeated upon payment or… … Law dictionary
floating charge — A mortgage, debenture or other security documentation, is likely to create charges over particular assets as security for borrowings or other indebtedness. There are essentially two types of charge, floating and fixed. A floating charge is… … Law dictionary
HM Revenue & Customs — (HMRC) The UK government department responsible for the administration of UK taxes (other than local authority taxes such as council tax). HMRC was formed on 18 April 2005 by the merger of the Inland Revenue and Customs & Excise. For further… … Law dictionary