If owed by company in liquidation

The claim process

If you are owed money by a company placed into liquidation, you can’t chase them directly to repay the debt. You should file a claim for what you are owed so you can share in any payment from the liquidation. 

The first step is to find out who the liquidator is, and contact them. 

The rest of the information in this section applies to companies where the Official Assignee is the liquidator, although all other liquidators should follow the same process.

Will I get regular updates?

The Official Assignee will send a report to all known creditors explaining the company’s financial position within 25 working days of the liquidation. It will set out what steps the Official Assignee will take to manage the liquidation and give an estimate of how long it will take to complete.

If it is a voluntary liquidation, where a special resolution is passed appointing the Official Assignee as liquidator, the first report to creditors will be sent within five working days of the appointment.

After the first report is sent, you can log in to the Insolvency and Trustee website at any time to see real-time updates on the progress of the liquidation. This will include how any assets are being dealt with and whether any money has been recovered.

If there is a likelihood that a payment will be made to creditors, further reports will be made every six months. A final report will be sent once the liquidation is complete.

Will I get my money back, and if so, when?

The amount of money you will recover will depend on whether the company has any assets.

It will also depend on how much is owed to other people, and whether anyone has a preferential claim, e.g. if someone is owed wages or if Inland Revenue is owed PAYE or GST, they will get paid out ahead of other creditors. It is common for only preferential creditors to receive payment.

Payments are normally made at the end of the liquidation, but occasionally an interim payment may be made partway through the administration.

What if my claim is rejected?

The Official Assignee administers the liquidation. This includes checking and approving claims. You will need to file a claim and provide evidence for it. If you don’t, your claim may be rejected or accepted for a smaller amount.

If your claim is rejected, you can appeal the decision by making an application to the High Court within 15 working days. The Court might confirm the Official Assignee's decision, or they might change or reverse it.