The liquidator rejects your proof of debt

The response is a decision rather than a routine query

A hypothetical supplier submits a proof of debt after a builder enters liquidation. A notice arrives rejecting the claim, and the owner plans to resend the same invoices next month. Read the notice promptly and obtain advice. A formal rejection can require a different response from an ordinary request for another document, with timing that should not be left to the normal collection cycle.

Identify exactly what was decided

Keep the complete notice and record when it was received. Check the company, claim reference, amount and stated reasons. Distinguish a rejection of the whole claim from a decision about a particular component. If the document is unclear, ask for clarification while seeking advice; do not assume uncertainty means no action is needed.

Check the available response urgently

ASIC's liquidation guide explains that a rejected claimant should follow the notice and seek competent legal advice about appeal options, with limited time to act. Ask the lawyer to assess the actual notice and required steps. This article does not calculate a deadline or say that resending invoices, asking questions or disagreeing with the decision preserves an appeal.

Source: ASIC: Liquidation — a guide for creditors

Compare the reason with the submitted evidence

In the hypothetical example, the notice may identify missing support for a variation included in the claim. Retrieve the exact submission and attachments, then locate any relevant instruction or acceptance record. Do not assume the liquidator received a document merely because it exists in your project folder. Preserve transmission evidence and identify any genuine omission accurately.

Give the adviser both favourable and difficult material

Include the contract, correspondence, reconciliation and any customer objections relevant to the rejected component. Explain missing records and conflicting figures without altering the originals. Ask what further evidence is useful and how it should be provided through the appropriate process. A more forceful statement of the same total does not answer an identified evidentiary problem.

Confirm the action actually taken

Record who is advising, what response has been authorised and what confirmation is required. Keep any later decision with the claim history. CRP can help organise the commercial evidence. The useful first move is a timely assessment of the rejection itself, rather than assuming the debt remains in an ordinary invoice-follow-up queue.