How long does a liquidation last?

There is no set timeframe for a liquidation. Most liquidations end in about a year from commencement, although some can drag on for years.

There are two milestones to be aware of during liquidations. First, the liquidator must notify creditors of their appointment. This must occur within 10 business days of their appointment in a creditors’ voluntary liquidation or within 20 business days in a court liquidation. Second, the liquidator may give creditors a statutory report (which explains the company’s financial position, amongst other things) within three months of their appointment.

A liquidation effectively ends once the liquidator has disposed of all the company’s assets and distributed all its money to the creditors.

However, there are still two formalities to be completed before the liquidation can officially end. First, the liquidator must provide ASIC with an end of administration return (which is a final account of receipts and payments). Second, ASIC must deregister the company, which occurs three months after the end of administration return is lodged.