Preferred creditors are generally unsecured creditors who are given priority over the other unsecured creditors under the Bankruptcy and Insolvency Act.

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Preferred creditors are indeed unsecured creditors who, under laws such as the Bankruptcy and Insolvency Act, are given priority over other unsecured creditors in the distribution of the debtor's assets.

Preferred Creditors Are Generally Unsecured Creditors Who Are Given Priority