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Will creditors recover their money?
Learn how available funds are distributed and the order in which creditors are paid.
Free Guide
A Guide for Creditors: The Company Liquidation Process
Understand what happens when a company that owes you money enters liquidation.
This practical guide explains the liquidation process from a creditor's perspective, including how assets are realised, how dividends are distributed, the role of the liquidator, and what you can expect throughout the process.
Written in plain English by Molly Monks F.I.P.A., Licensed Insolvency Practitioner, this free guide is designed to help creditors understand the process with confidence.
11 Page PDF
PARKER WALSH
A GUIDE FOR CREDITORS
The Company Liquidation Process
11 PAGE GUIDE
✔ Written by a Licensed Insolvency Practitioner
✔ Free instant download
✔ Plain English guidance
✔ Updated July 2026
Practical creditor guidance
What's inside this guide
The Company Liquidation Process can often seem confusing, particularly if you have never dealt with insolvency before. This guide explains each stage clearly, helping you understand what happens after a company enters liquidation and what it means for creditors.
02
The liquidation process
A straightforward explanation of each stage from appointment of the liquidator through to closure.
03
Director conduct
Understand how directors' actions are reviewed and what investigations may take place.
04
Company assets
Discover how assets are identified, valued and sold for the benefit of creditors.
05
The Insolvency Service
Learn the difference between the Insolvency Service and the appointed liquidator.
06
Frequently asked questions
Clear answers to the questions creditors ask most often.
Clear, reliable information
Why download this guide?
If a customer, supplier or another business owes your company money and has entered liquidation, it is natural to wonder what happens next.
Many creditors are unsure whether they will receive payment, how long the process will take, or who is responsible for investigating the directors' conduct. Unfortunately, misinformation and conflicting advice online often make matters even more confusing.
This guide has been written by Molly Monks F.I.P.A., Licensed Insolvency Practitioner and Director of Parker Walsh, to explain the process in straightforward language without unnecessary legal jargon.
Inside, you'll gain a clearer understanding of how liquidations work, how assets are realised, how creditors are treated fairly under insolvency legislation, and what you should expect throughout the process.
Whether you are a supplier, contractor, landlord, lender or another unsecured creditor, this guide provides practical information to help you understand your position and the next steps.
Free instant download
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Simply expert guidance from Parker Walsh.
About the author
Written by Molly Monks F.I.P.A.
When you download one of our guides, you're benefiting from more than twenty years of insolvency experience.
Molly Monks is a Licensed Insolvency Practitioner and Director of Parker Walsh. She has advised hundreds of company directors, creditors and business owners across England and Wales and is authorised to undertake all formal insolvency procedures.
Molly is regularly featured in the national press, commenting on insolvency, business recovery and financial matters, and is recognised for providing straightforward, practical advice tailored to each client's circumstances.
Read Molly's profile →Common questions
Frequently Asked Questions
Will I automatically receive money if a company enters liquidation?
Not necessarily. Whether creditors receive a dividend depends on the value of the company's assets and the level of claims made against the liquidation.
Who gets paid first?
Certain claims have priority under insolvency legislation, including the costs of the liquidation and some employee claims, before unsecured creditors receive any dividend.
Can directors be investigated?
Yes. The conduct of directors is reviewed as part of every liquidation. Where evidence of misconduct is identified, the Insolvency Service may take further action.
How long does liquidation take?
Every case differs, although many liquidations take between twelve and twenty-four months depending upon the assets and investigations involved.
What if I disagree with the liquidator?
Creditors have statutory rights throughout the liquidation and can contact the appointed liquidator if they require clarification or wish to raise concerns.
Continue reading
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Need advice that's specific to your situation?
Every liquidation is different.
If you have questions about a company in liquidation, your rights as a creditor, or another insolvency matter, Molly and the Parker Walsh team are here to help.
