Commentary

176 The prescribed part for unsecured creditors

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)
| Commentary

176 The prescribed part for unsecured creditors

| Commentary

176 The prescribed part for unsecured creditors

The abolition of preference for Crown debts1 is partially compensated for, where there is a floating charge created on or after 15 September 2003, by the provision in the Insolvency Act 1986 Section 176A2 for a ‘top slice’ of net floating charge realisations to be paid to the unsecured creditors. This does not apply if the floating charge was created before that date (although the abolition of preference for Crown debts does). The prescribed part of the company’s net property to be made available for the satisfaction of unsecured debts of the company

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