In Relation to the Order of Priority of Payment of Debts

question 27

Multiple Choice

In relation to the order of priority of payment of debts upon liquidation, which of the following statements is correct?

• A) Deferred creditors are paid before secured creditors.
• B) Deferred creditors are paid before ordinary unsecured creditors.
• C) Preferential unsecured creditors are paid before deferred creditors.
• D) Ordinary unsecured creditors are paid before preferential unsecured creditors.