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When a company goes bankrupt … What is the order of liabilities they have to pay first?

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Leading UK
When a company goes bankrupt … What is the order of liabilities they have to pay first?

Companies that have declared bankruptcy instruct a licensed insolvency practitioner (IP) to handle the company liquidation process. The IP also deals with paying creditors with the proceeds of the sale of the company’s assets. The Insolvency Act 1986 sets out the liabilities hierarchy that liquidated companies must follow. This hierarchy determines which liabilities are paid first, and in full, before funds are allocated to the next creditor.

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