Preferred Debt - Explained
What is Preferred Debt?
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Table of ContentsWhat is a Preferred Debt?Academic Research
What is a Preferred Debt?
Preferred debt refers to a financial obligation (debt) that carries priority or preference over other debts. As such, preferred debts are paid before regular(or non-preferred) debts.
A preferred debt becomes important in instances of payor insolvency or bankruptcy. Preferred debts will be paid from estate of the debtor before regular debts are paid.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
- What is the appointment of a Trustee or Examiner in business bankruptcies?
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- Reorganization - Definition
- Subordinated Debt
- Preferred Debt
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- Cramdown Definition
- To what extent does the bankruptcy process relieve a debtor's debts?