Preferential Payment Clawback is the term used when a liquidator claws back money from an unsecured creditor in order to pay a secured creditor.Essentially when a business files for liquidation a liquidator will review the potential liquidated assets of that business against any secured creditors (businesses who have registered on the PPSR). If it turns out that there is more owed to the secured creditors than the liquidated assets of the business, the liquidator will review the last 6 months of transactions prior to liquidation looking for payments to any unsecured creditors. (businesses who have NOT registered on the PPSR).Once identified the liquidator has the legal right to demand the return of any amounts paid to any unsecured creditors in the previous 6 months. This can be 10’s if not 100’s of thousands of dollars.