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CONCURRENCE OF CREDITS, definition.
It implies possession by two or more creditors of equal right or privileges over the same property or all of the property of a debtor.

PREFERENCE OF CREDIT, definition.
It is the right held by a creditor to be preferred in the payment of his claim above other out of the debtor’s assets.

NATURE AND EFFECT OF PREFERENCE
1. A preference is an exception to the general rule. For this reason, the law as to preferences is strictly construed.
2. Preference does not create an interest in property. It creates simply a right of one creditor to be paid first the proceeds of the sale of property as against another creditor.
3. The law does not give the creditor who has a preference a right to take the property or sell it as against another creditor. It is not a question who takes or sells, it is one of the application of the proceeds after the sale—of payment of the debt.
4. The right of preference is one which can be made only by being asserted and maintained. If the right claimed is not asserted or maintained, it is lost.
5. Where a creditor released his levy, leaving the property in possession of the debtor, thereby indicating that he did not intend to press his claim further as to that specific property, after that act, his claim to preference, if one had been asserted y him, could not exist because he had ceased to contest.

WHEN RULE OF PREFERENCE APPLICABLE
1. Apply only where two or more creditors have separate and distinct claims against the same debtor who has an insufficient property
2. Is applicable when the debtor is insolvent—having more liabilities than his assets
3. It is a matter of necessity and log that the question of preference should arise only when the debtor’s assets are insufficient to pay his debts in full

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