This will depend on a number of factors.

Banks and other financial institutions sometimes require a debenture (security) to be registered which secures their lending over all or part of the Company’s assets. These are called secured creditors who have a charge on an asset and get paid first from any realisations from that asset.

The following category are known as preferential creditors. These relate to certain employee claims in respect of wages and holiday pay.  HMRC’s preferential status is also being reinstated in respect of certain debts, from 1 December 2020.

Trade and expense creditors, contractors, any monies due to employees that are not preferential are classed as unsecured creditors.  These claims rank equally.