Company in Liquidation: What Australian Customers and Creditors Can Do, November 10, 2026

Information checked: November 10, 2026, at 01:09 UTC (UTC+00:00).

If an Australian company goes into liquidation while it owes you money, act promptly: identify the appointed liquidator, gather your records, and ask how to register your claim. Customers who paid for goods or services they did not receive should also contact their bank or payment provider immediately to ask whether a payment reversal is available.

Recovery is uncertain. Customers and many suppliers are usually unsecured creditors, so they may receive only part of what they are owed—or nothing—depending on the company's assets, the costs of the liquidation, and other claims. This guide explains practical steps for an Australian company; it does not concern a particular named collapse.

Destaques

• Check ASIC's published notices to confirm the company's status and identify its liquidator.
• Ask your bank or payment provider about a reversal quickly; time limits can apply.
• Keep evidence and register your claim with the liquidator, including any required proof of debt.
• Check separate options for faulty goods, unpaid employee entitlements, and industry compensation funds.

How do you find out whether a company is in liquidation?

Search by the company's name or number on ASIC's published notices. Check the legal entity name against your invoice or contract: a familiar trading name may not be the name of the company that owes you money. The notice can identify the insolvency appointment and the practitioner handling it.

Liquidation is different from voluntary administration or receivership, even though a business in any of these processes may have an external practitioner involved. Check the appointment before acting and follow the instructions relevant to that company. The Australian Competition and Consumer Commission (ACCC) recommends checking announcements from the practitioner or any buyer for information about outstanding transactions.

Contact the liquidator using independently verified details. Explain what you are owed, ask to be included on the creditor list, and request instructions and deadlines. Save copies of your communications. If you receive an unexpected request for payment or personal information, verify it through an independently sourced contact before responding.

Can customers get their money back after a company goes into liquidation?

Possibly, but there is no guarantee. If you paid for an undelivered order or service, have a deposit outstanding, or hold an unused gift card or credit note, you may be a creditor. These steps can help you explore the available routes:

1. Ask your payment provider about a reversal. If you paid by credit card, debit card, a loan, or a service such as PayPal, contact the bank or provider promptly. The ACCC says a reversal may be possible and time limits apply. Eligibility and the process depend on the payment method and circumstances.
2. Check whether the transaction will be honored. A business may continue trading during an insolvency process, and the practitioner may provide instructions about orders, vouchers, or conditions for using them. Do not assume a gift card will automatically work.
3. Register with the liquidator. Give your contact details, the amount claimed, and supporting documents. Ask whether a formal proof of debt is needed now and keep a copy of anything submitted.
4. Check for a compensation scheme. Some states and territories have funds for consumers affected by insolvency in particular industries. Ask your state or territory consumer protection agency whether one applies.

Keep receipts, order confirmations, invoices, gift card details, bank statements, delivery promises, and relevant correspondence. Record the amount paid and what remains undelivered. If you recover money through one route, tell the liquidator so your claim can be adjusted; do not claim the same loss twice.

How do creditors lodge a proof of debt?

A proof of debt is a formal statement of a claim against the company. Suppliers should gather invoices, contracts, statements, delivery records, and details of payments or credits. Customers should provide evidence of the purchase and the loss. If the claimant is a company, ASIC says the form must be signed by someone authorized to act for it.

Ask the liquidator to acknowledge receipt and say whether more evidence is needed. The ASIC guide for creditors explains that a liquidator will call for formal proofs if funds may be available for payment and must give at least 14 days' notice of the deadline. A claim can be rejected if it is not adequately supported. If yours is rejected, read the notice promptly: there is a limited time to appeal.

Secured creditors should identify their security and seek advice about their position. A supplier that believes it owns goods held by the company should tell the liquidator and provide the relevant contract and records; ownership and security questions depend on the facts. A business owed a substantial amount may benefit from independent legal or insolvency advice before taking further action.

Who gets paid first, and when might creditors receive money?

Payment depends on what the liquidator recovers and the legal priority of claims. Secured creditors have rights in relevant secured assets. Liquidation costs and certain priority claims, including employee entitlements, also affect what remains for ordinary unsecured creditors. ASIC explains that, within the applicable order, a category must generally be paid in full before the next is paid; if there is too little for a category, the available amount is shared proportionately.

A distribution to creditors is called a dividend, but it is not assured. Its amount and timing cannot be predicted simply from the appointment. ASIC says the liquidator ordinarily provides a report to creditors within three months, including information about the likelihood of a dividend; reporting differs under simplified liquidation. Read the report and later notices for case-specific estimates, treating them as estimates rather than promises.

What if an employee is owed wages or a customer has a faulty product?

Employees should contact the liquidator about unpaid entitlements and check eligibility for the Australian Government's Fair Entitlements Guarantee. According to the Fair Work Ombudsman, the scheme can cover certain unpaid wages, leave, notice, and redundancy entitlements within its rules and limits. It does not cover unpaid superannuation; employees can consult the Australian Taxation Office about that separately.

For a faulty product, the retailer's insolvency can affect how a remedy is obtained. If the manufacturer is a different business, the ACCC suggests contacting it to seek a solution. If the business has been sold, check what the buyer has agreed to take on: the outcome can depend on the structure and terms of the sale. Keep your proof of purchase and a description of the fault.

FAQ

Does registering as a creditor guarantee a refund?

No. Registration allows the liquidator to identify your claim, but payment depends on available funds, the validity and priority of claims, and the costs of the process.

Can I still use a gift card?

It depends on the business's circumstances and the practitioner's or buyer's arrangements. Check their current instructions. If the card is not honored, ask the liquidator how to register the remaining value as a claim.

Can I ask the liquidator for updates?

Yes. Creditors can request information, reports, or documents, subject to the rules and whether the request is reasonable. Keep your contact details current so notices reach you.