4. c. 16), and for companies in 1888 pursuant to the Preferential Payments in Bankruptcy Act 1888 (51 & 52 Vict.

If there is a shortfall, in those cases where someone earns in excess of the government limit, then they can claim preferentially too.

[5] Creditors, and sometimes individual assets, are also placed in classes by specific laws for specific events, such as a deposit insurance scheme triggered by a bank failure.

[6] following are the preferential creditors:- 1.all revenues, taxes, cesses and rates, whether payable to the Government or local authority, due to payment by the company with in 12 months before the date of commencement of winding up.

[7] In admiralty law, many legal systems accord certain claims preferential status where a ship is subject to arrest.