Final answer:
When a floating charge is used to secure a debt and there is a default, the charge crystallizes and attaches to specific assets. The main advantage is that the secured creditor has priority over unsecured creditors in the event of default.
Step-by-step explanation:
When a floating charge has been used to secure a debt and the debtor defaults, the charge crystallizes. This means that the charge becomes fixed and attaches to specific assets of the debtor. The main advantage of using a floating charge in the event of default is that it allows the secured creditor to have priority over the unsecured creditors in the distribution of the debtor's assets. This means that the secured creditor will be paid first before the unsecured creditors receive any payments.