There is an order of who gets paid first where a formal act of insolvency exists:
1
Insolvency Practitioner
Costs and expenses

2
Bank, lender
Debenture holder with fixed charge

3
VAT, PAYE, NI, staff wages, pensions and holiday pay
Preferential creditor

4
Bank, lender
Debenture holder under a floating charge

5
Suppliers, utilities, unsecured lending
Unsecured creditors
Payments to the above creditors are based on a ‘count back’ method. The insolvency practitioner is the first to be paid in full: if there are sufficient funds remaining the debenture holder (fixed charge) is the next to be paid, then the preferential creditor and so on, until there are no funds left.

When there are funds left over for unsecured creditors, the funds are distributed proportionally on a pro rata basis.