Preferential Claim
/ˌprɛf.ər.ˈɛn.ʃəl ˈkleɪm/
Definitions
- (n.) A claim that is entitled to priority in payment over other debts in insolvency or bankruptcy proceedings.
The preferential claim of certain creditors must be paid before unsecured claims.
- (n.) A debt or obligation given priority under the law, often arising from statutory provisions or contractual agreements.
Wage arrears are often treated as preferential claims in bankruptcy.
Forms
- preferential claims
Related terms
See also
Commentary
Preferential claims frequently arise in insolvency contexts, requiring careful statutory interpretation to determine ranking among creditors.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.