3. I am a creditor of a company that has been wound up. Can I do anything to recover the debt?

3. I am a creditor of a company that has been wound up. Can I do anything to recover the debt?

You have to prove that the company owes you the debt by completing a Proof of Debt Form (Form 63A). You should submit the form to the provisional liquidator or liquidator, together with documentary evidence, if any, after the winding-up order has been made against the company. A filing fee of $35 is required if the debt exceeds $250 or it is not an employee’s claim. Also, you may attend or even summon a general meeting of creditors so that you can participate in decisions concerning the distribution of the remaining property of the company.

Unless the debt owed to you by the company is secured and the value of the assets covered by the security is sufficient to repay the debt, you are not guaranteed that you can recover all the money.

Unsecured creditors may recover money only if there are funds remained in the assets of the company after the realizations of all the company’s assets (i.e. all the assets were sold and converted to cash) and the deduction of all fees and expenses incurred in the winding-up process. Usually the unsecured creditors could not recover the full amount and they will be paid in proportion to the size of their debts.