Dividends in a company winding up

When do I get my money?

Unsecured (trade) creditors with claims against a company are often left with little recourse available once they've exhausted all the normal methods of attempting to collect their debt, other than to instruct solicitors to commence winding up proceedings. This has been after letters of demand, phone calls, messages left, and even commencing formal proceedings by issuing a statutory demand for payment. This often leads to a creditor applying to court to appoint a liquidator to wind up the company.

Once a liquidator is appointed, the focus of the creditor quickly and understandably turns from 'how do I recover my debt?' to 'when do I get my money?'. Sometimes this can create frustrations when dealing with the liquidator's team when creditors are constantly told that investigations are continuing, reports are being prepared, a dividend 'might' be possible subject to recoveries and costs. But what does all this mean? Creditors still needing