'first charge' would normally be held by Ccustoms & Excise, Inland Revenue etc. Generally, there is perilously little left after this for other creditors, be they secured or unsecured
Not the case any more. The rules changed about three years ago so that the Inland Revenue had the same status as any other creditor in a bankruptcy. The logic was that the Inland Revenue's preferential status was leaving less in the pot for other creditors which was in turn causing a domino effect of more bankruptcies of other companies due to lack of pay-outs from bankruptcy. There may of course not be a lot in the pot to pay out anyway but at least the Inland Revenue doesn't have first shout nowadays.
Why all the criticism of Phil Wyatt?
Neither today's Daily Mail or last night's Evening Standard look to have been very fond of him. Aerial pics of the house are going a bit over-the-top though. I wonder what they will say when the new venture springs up in ten days time.