What to do if you are a Creditor of a company that is in Liquidation

Question:

I am an unsecured creditor of a company that goes into liquidation. I paid just over $10,000 for goods, the sale amount in full and was told they would hold onto them until I needed them delivered. At no time was I told the goods did not belong to me until they were delivered. I am wondering if there is any chance of getting any or all of my money back?

Quick Answer:

You need to lodge a proof of debt with the liquidator and find out when the creditor’s meetings for this company are so that you can attend and vote as a creditor. This is an excellent resource for creditors of a company in liquidation which you should read.

Also, you will need to get all of the documentation together which shows you purchased goods from them like invoices, plans receipts, email from the company and anything else that shows your entitlement as a trade creditor to the company. If they sold you goods after the date of liquidation then they would have been trading insolvent which can lead to a prosecution by ASIC. I am sorry to say that often when a company becomes insolvent, the unsecured creditors only get cents in the dollar from the transaction although you need to continue to lodge your interests in the company to have any chance of getting anything back at all. Click on the above link for legal advice.

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