The law recognises three classes of creditors of an insolvent estate:
Secured creditors are those who have the right to control particular assets in the estate as security for than debts and include the holders of mortgage bonds as well as sellers of goods under the credit agreements Act (hire purchase) They have a first claim to full settlement out of the proceeds of the relevant assets,
Preferent creditors are defined by the Insolvency Act and have the right to settlement before so-called concurrent creditors This category includes auditors and accountants, employees and state departments such as the Department of Finance and the Receiver of Revenue;
Concurrent creditors are any others who are able to prove claims against the estate. When the assets of the estate have been realised, and the secured and preferent creditors have been paid, the remainder is divided among the concurrent creditors in proportion to their claims
