Proof of debt form, can anyone help?

[IHopeYouStepOnALegoPiece]

Company that owes us money has gone into liquidation so need to fill this in and I’m stuck on 2 bits

Give details of whether the whole or any part of the debt falls within any (and if so which) of the categories of preferential debts under section 386 of, and schedule 6 to, the Insolvency Act 1986
(What does this mean!!)

And

Particulars of any security held, the value of the security and the date it was given

The company is a removal company, does this mean the insurance we took out or is it more if we were a bank claiming against someone’s home

TIA!

Pleading bump!

What are you claiming for? Damaged items? If so, it is not a preferential debt

Preferential debts = debts paid first before any remaining liquidated monies are paid out to ‘normal’ creditors (think pension payments to employees/preference shareholders/debts with a fixed charge over assets)
Security held = was there any legal agreement such as a fixed/floating charge over the companies assets? Eg holding security such as over a building/machine etc

Thank you!!

Yes it’s for damaged items.

So the answers are no security and not preferential debts?

Thank you again!

If it’s just damaged items you’re claiming for then both answers will be no 😊