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liquidation administration difference
company Administration money back
director after insolvency

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.

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