The Insolvency Act 1986 priority list

    Fixed charge holders
    Insolvency practitioner fees and expenses, s 176ZA
    Preferential creditors, ss 40, 115, 175, 386 and Sch 6
    Ring fenced fund for unsecured creditors, s 176A and SI 2003/2097
    Floating charge holders
    Unsecured creditors, s 74(2)(f)
    Interest on debts proved in winding up, s 189
    Money due to a member under a contract to redeem or repurchase shares not completed before winding up, CA 2006 s 735
    Debts due to members under s 74(2)(f)
    Repayment of residual interests to preference, and then ordinary shareholders.

Sources: Insolvency Act 1986 and Companies Act 2006

Since the Bankruptcy Act 1542 a key principle of insolvency law has been that losses are shared among creditors proportionately. Creditors who fall into the same class will share proportionally in the losses (e.g. each creditor gets 50 pence for each £1 she is owed). However, this pari passu principle only operates among creditors within the strict categories of priority set by the law:[32]