AnswersWhen a client goes under
How long does a liquidation take, and when would I get paid?
The short answer
Usually about two years. No law sets an end date, but in an Insolvency Service study of creditors' voluntary liquidations that began in 2017, the typical one took 712 days and creditors as a whole typically got back 0%1. The liquidator must report to creditors every 12 months2, so you will hear something each year, with or without money. Plan on the report, not the payment.
England and Wales only. WolfX is software, not a law firm.
The numbers
What the study and the rules say.
What you can add
A £6,000 debt, in a liquidation that starts on 14 October 2026
An illustration, not a forecast. Say the liquidator is appointed on Wednesday 14 October 2026 and you prove for £6,000. The first 12 months end on 13 October 2027, so the first report is due by 13 December 2027. The second is due by 13 December 2028. Say a dividend notice is dated 1 March 2028. The last date for proving can be no earlier than 22 March 20287, and the dividend must be declared within two months of that date9, by 22 May 2028, unless it is postponed or cancelled.
At an illustrative 5p in the pound, the same debt returns £300.00, declared by 22 May 2028 in this timetable. A dividend is pence in the pound, not pounds.
The road ahead
Six steps. All free.
Step 1: Start the clock at the appointment
The day the liquidator is appointed is day one, not the day the company stopped trading. Find it on the notice you were sent, or search The Gazette11 for the company's name.
The study's 712 days1 run from that day until the company is dissolved, three months after the final account is registered10.
The liquidation itself ends when the final report goes out, at least three months before that. Take those months off and the middle case is about 620 days1.
Step 2: Send your proof of debt
Return the form with your invoice and any order or contract. A proof that arrives after the last date for a dividend can be ignored8 for that dividend, so send it now, not when a notice appears. Keep your contact details current with the liquidator.
Step 4: Watch for a dividend notice
A first dividend starts with a notice: in The Gazette5 unless creditors were already invited there to prove, and sent to those who have not proved6. The last date for proofs must be at least 21 days after the notice7.
The liquidator then has 14 days after that date to admit or reject proofs8 and must declare the dividend within two months9 of it, unless they have cause to postpone or cancel it.
Step 5: Write the debt down in your books
Book it as unlikely to be paid. The study's typical return was 0%1, so treat any dividend as money back, not money you were counting on. Ask your accountant about reclaiming the VAT on the invoice.
You are paid after the costs and after any creditors who rank ahead of you1, so a supplier's dividend comes last. Who gets paid first has the order.
Step 6: Ask one question after each report
When a report arrives, or about three months after your proof, send the email below. A weekly phone call will not make the process faster.
A letter you can copy
Email to the liquidator after your proof
Send it when the first progress report arrives, or about three months after you delivered your proof.
Tap a highlighted gap to see what goes in it.
Send it by email to the address in the liquidator's notice or latest report, so it is dated, and keep a copy with your proof. Ask once. If the reply date passes, wait for the next report before writing again.
When not to bother
When it isn't worth it
- The company has little or no money. The process still runs, but the study's typical return was 0%1. Plan on nothing.
- It is an administration, not a liquidation. Reports come every six months4, not every 12, and the road is different. Check which notice you were sent.
- A court ordered the winding up. The study covers voluntary liquidations only, so do not borrow its 712 days. Reports are still due every 12 months3 once a liquidator other than the Official Receiver is appointed.
- They still hold goods you own under a retention of title clause. That is a separate claim from a proof of debt, so deal with the goods first.
- The company is registered in Scotland or Northern Ireland. The rules differ there, and this page covers England and Wales.
The Wolf's note
The date you want does not exist. The dates that do exist are the report dates, and they are enough to plan around. Prove early, write the debt down, and let the first report tell you what is left.
Mr. Wolf · the AI inside WolfX
What comes next
Your next move
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A company that owes me money has gone into liquidation. What happens to my invoice?
Your invoice joins a queue behind lenders, the costs, wages and some HMRC debts, so suppliers usually get little.
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A company that owes me money is in administration. What now?
You can't sue a company in administration without the administrator's consent or the court's permission.
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Don't want to do this yourself?
The Wolf does every step for you. He works out the sums, writes the letters and keeps track of every date. Nothing goes without your yes.