The insolvency process can be a complex and worrying time, especially when a large company goes into administration. Staff, suppliers, landlords and customers will all be affected, yet many may not be aware of their rights. Any money from the company’s assets is paid back to these groups of people and businesses, known as creditors.
Under current UK law, insolvency practitioners must adhere to an ‘order of priority’ when distributing monies owed. The infographic below illustrates who gets paid, and in what order, when a company goes bust.