How to get money back from a business that closed (Australia)

If the business that closed took your money, start by identifying what sort of business it was and how you paid—those two facts usually decide your next move. If it was a registered company in liquidation, you will generally need to register with the liquidator or administrator as a creditor; if you paid by credit card or through a bank, a chargeback or payment dispute with your provider can sometimes return money faster and independently of insolvency. The likely recovery for ordinary consumers is limited, but the right pathway depends on the facts; the sections below explain how to check, act, and prioritise your options.

Why the business type and payment method matter

Whether the trader was a company, a sole trader, a partnership or someone trading under a name changes the legal process that applies. Company failures are managed through corporate insolvency processes where creditors must register with the administrator or liquidator; those guides are set out by ASIC and explain how to lodge a Proof of Debt and what to expect. See ASIC’s creditors’ guide for the process and priorities: Liquidation: a guide for creditors | ASIC.

If you paid by a regulated payment method (credit card, debit card, some online payment platforms) you have a separate, practical route: lodge a dispute with your bank or card issuer for goods or services not received or for an unauthorised transaction. The ACCC encourages consumers to explore these chargeback or dispute options because they operate outside insolvency and can produce quicker results: When a business goes bust | ACCC.

If the trader was a sole trader or individual, the situation is different: you may be dealing with personal bankruptcy or simply an individual who cannot repay debts. The Australian Financial Security Authority explains the differences between company liquidation and personal bankruptcy and why remedies differ: Personal bankruptcy and the liquidation of a company | AFSA.

Practical first steps you should take now

1. Collect and preserve records that matter. Keep receipts, bank/card statements, email exchanges, contracts, screenshots and any delivery or service confirmations. These are the core evidence you will need for a bank dispute, a complaint to Fair Trading, or a claim in insolvency.

2. Confirm the business entity and insolvency status. Search ASIC registers to see if the business is a registered company and whether an administrator or liquidator has been appointed. If you find an administrator or liquidator name, that person is the formal contact for creditor claims. ASIC’s guide explains how creditor registration and proof of debt work: Liquidation: a guide for creditors | ASIC.

3. Contact the named administrator/liquidator or the business (if still contactable) in writing. If a liquidator or administrator is appointed, follow any published instructions and lodge any proof-of-debt forms by the stated deadlines. If the business hasn’t entered formal insolvency, send a clear written request for a refund and keep copies.

4. Lodge a dispute with your bank or card issuer without delay if you used a card or eligible payment method. Banks and card providers work to different rules and time limits; the ACCC and state consumer pages recommend pursuing this route because it can succeed even when insolvency yields little.

Official complaint routes and small claims tribunals

If the business has not yet entered formal insolvency and you can identify an owner or trading name, state and territory consumer protection offices (Fair Trading) and minor civil dispute tribunals are a useful option—particularly for relatively small sums. Procedures and monetary limits vary by state; Legal Aid NSW summarises consumer complaint and negotiation options for NSW consumers: Negotiating with the business and making a complaint | Legal Aid NSW.

Use your local Fair Trading office to lodge a complaint or to find the small-claims tribunal that covers your state. These avenues are more practical when the trader is a local sole trader or when the company has not yet been liquidated.

What to expect in a liquidation or administration

If the trader is a company in formal liquidation, unsecured consumer claims sit low in the priority order. Secured creditors (for example banks with security over assets), costs of the liquidator and certain employee entitlements come first; unsecured creditors often receive only a small dividend, or nothing at all. ASIC’s creditor guide explains these priorities and the proofs you will need to lodge: Liquidation: a guide for creditors | ASIC.

That reality is why pursuing a bank or card dispute can be the most effective early option—because it does not rely on available estate funds in a liquidation. Be mindful of deadlines both for payment disputes (your bank’s time limits) and for lodging a Proof of Debt when a liquidator issues a notice.

When to get legal or specialist advice

If the sum is substantial, if the insolvency looks irregular, or if you suspect money was transferred shortly before the company closed in a way that might be recoverable, seek specialist insolvency or commercial advice. Liquidators can investigate voidable or preferential transactions, but these are technical areas where professional advice helps you understand whether recovery is realistic. AFSA’s overview distinguishes personal bankruptcy paths from company liquidation and underscores the complexity of non-company failures: Personal bankruptcy and the liquidation of a company | AFSA.

A realistic example

Imagine you paid $1,200 by credit card for renovation work. The tradesperson’s business subsequently closed and left. You should (a) keep contracts and photos, (b) contact your card issuer immediately to lodge a dispute for non‑delivery of services, and (c) check ASIC to see whether the business was a registered company. If the card dispute succeeds, you recover sooner; if it fails and the company is in liquidation, you may register as an unsecured creditor but the likely dividend is uncertain.

Useful official pages and next actions

• For guidance on consumer options when a business closes, see the ACCC’s consumer guide: When a business goes bust | ACCC.
• For creditor steps and Proofs of Debt in company insolvency, read ASIC’s guide: Liquidation: a guide for creditors | ASIC.
• For differences between company liquidation and personal bankruptcy (relevant if the trader is a sole trader), see AFSA: Personal bankruptcy and the liquidation of a company | AFSA.
• For state consumer complaint procedures, start with your local Fair Trading office; Legal Aid NSW has an accessible overview for NSW consumers: Negotiating with the business and making a complaint | Legal Aid NSW.

If you prefer a professionally drafted written demand that summarises your claim before escalating to a bank dispute, a tribunal, or insolvency claim, services such as BeforeSuit can prepare a clear, businesslike demand from information you provide: https://beforesuit.com/

Be realistic: for many consumer claims against failed trading companies the likely recovery is small. Act quickly on payment disputes, preserve evidence, check ASIC for any appointed administrator or liquidator, and choose the route that fits how the business traded and how you paid.

For help preparing a professional demand letter, BeforeSuit can help you prepare your next steps.