Which Creditors Are Paid First in a Liquidation?
Secured creditors are paid first, followed by unsecured creditors. If there is any money left, shareholders are paid.
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Liquidation Preference: Definition, How It Works, and Examples
She is a FINRA Series 7, 63, and 66 license holder. Joules Garcia / Investopedia A liquidation preference is a clause in a contract that dictates the payout order in case of a corporate liquidation.