Backed by documents
A proof of debt is supported by your invoices, statements and contracts.
Insolvency
Lodging a proof of debt in a liquidation
A proof of debt is how an unsecured creditor claims in an insolvency. Here's what it is, what it typically needs, and where it fits.
A proof of debt is the formal claim an unsecured creditor lodges with a liquidator (or administrator) to be recognised in the winding-up of a company that owes them money. It sets out the amount owed and the basis for it, supported by the underlying documents — invoices, statements, contracts and any correspondence establishing the debt. Lodging it is what puts you in line for any dividend the liquidation ultimately pays.
Whether a dividend is ever paid, and how much, depends entirely on the assets the liquidator realises and the priority order that applies — unsecured creditors often receive little. That is exactly why any security or guarantee you hold matters so much, and why the strongest protection is put in place before a customer fails. This is general information, not legal advice; the process and any deadlines should be confirmed with the liquidator or a qualified adviser. If you hold a guarantee or security alongside the debt, refer the account and we'll assess it.
The essentials
Claiming in an insolvency
Puts you in line
Lodging it is how you claim any dividend the liquidation pays.
A dividend isn't guaranteed
Payment depends on the assets realised and the priority order that applies.
Security still matters
Any guarantee or security you hold can be worth far more than the proof alone.
Holding a guarantee too?
Refer the account and we'll assess what's recoverable beyond the proof of debt.
Common questions
Frequently asked questions
What is a proof of debt?
The formal claim an unsecured creditor lodges with a liquidator or administrator, setting out the amount owed and the basis for it, supported by invoices, statements and contracts.
Will lodging one get me paid?
It puts you in line for any dividend, but payment depends on the assets realised and the priority order. Unsecured creditors often receive little.
What if I also have a guarantee or security?
That can be worth far more than the proof of debt alone. Refer the account and we'll assess whether the guarantee or security is recoverable.
Is this legal advice?
No — this is general information only. Confirm the process and deadlines with the liquidator or a qualified adviser.
Get started
Debtor being wound up?
Refer the account for a free appraisal of any guarantee or security.