Your Directors loan account will record money that you have put into the company. If you are owed money by the company at the date of liquidation, then you will have an unsecured claim for the amount which you are owed. 

Creditors are payed in a hierarchy order, as determined by their claim type, creditors are ranked as followed;

  • Secured Creditors 
  • Preferential Creditors 
  • Unsecured Creditors 
  • Shareholders

It is worth noting that should there be a fixed charge in place and payment is to be made to the secured creditor, then the Prescribed Part provision will apply, if certain circumstances are met. This will enable a distribution to be made to unsecured creditors prior to the secured creditor being paid in full. Further information on this can be provided if necessary.