In insolvency, a creditor with a claim that ranks in priority to other unsecured creditors and (in corporate insolvencies) to floating charge holders and the prescribed part (Schedule 6 and sections 175, 176, 328, 347 and 386, Insolvency Act 1986 (IA 1986)). There are a number of different rankings and categories given to such claims. Such claims include some employee claims, contributions to pension schemes and tax liabilities. There are special rules for the winding up of financial institutions (sections 176AZA and 387A, IA 1986).

For more information on preferential creditors in corporate insolvencies, see Practice note, How are assets distributed to creditors in corporate insolvency procedures?: Preferential creditors.