Preferential Payments allow a creditor to have preference of payments or transfers of assets over other creditors to help secure against loss.
In certain instances, the liquidator may recover these payments or transfers which will be provided to the appropriate creditors to cover such losses.
Who may recover preferential payments. As mentioned above, the liquidator is the only person that can recover preferential payments.
However, to recover these payments it may require a Court Order to enable to process to be completed.
Before a Court orders a preferential payment, the following must be fulfilled: