FAQ Videos If a creditor petitions for Liquidation do they get paid first?If a creditor petitions for liquidation do they get paid first?You can watch more FAQ Videos from Portland below, or on our dedicated FAQ Videos page, or on the official Portland Business Recovery YouTube channel If a creditor petitions for liquidation do they get paid first?There are two answers to this depending on what we are talking about being paid.When a creditor petitions to place a company into Compulsory Liquidation, they will pay various costs. They are likely to pay a solicitor to start the process in order to put the company into Liquidation, and also pay a petition and various fees to the court. Once sufficient assets have been realised into the Liquidation, these costs are paid as a priority and therefore paid before the other fees of the Liquidation. With regards to the debt itself, that will continue to sit with all other creditors of the company. So whilst they are not getting priority in terms of their debt, they will do in terms of the cost they have paid out. Also, by taking action, they’ll have ensured that they have protected their position as much as they can.Find out more about our range of services. Call 01489 550 440 and ask for a free consultation so you can review your optionsCONTACT US TODAY