Preferential Creditor

Preferential Creditor is usually an individual or organization which has priority in being paid the bucks it is owed if your debtor declares bankruptcy. Because bankrupt entities do not have enough money to fulfill a bunch of their financial obligations, some investors which might be owed money are certain to get paid in part or not at all. A Preferential Creditor carries a first claim for you to any funds that exist from the person.