In a Liquidation, there are 2 claims filing deadlines: the maximum protection deadline and the 6 month deadline for all claims. If you file your claim before the expiration of the maximum protection deadline you will receive the maximum protection afforded under the Securities Investor Protection Act. This means that in most circumstances, the Trustee will return to you, up to the limits of SIPC protection, the same quantity of securities that were in your account on the filing date. In certain circumstances, the Trustee may not be able to return the securities. In those circumstances you will get the value, up to the SIPC limit, of the securities in your account on the filing date.
If you file your claim after the maximum protection deadline but before the 6 month deadline for all claims, the Trustee has the option to deliver securities or the value of the securities that were in your account on filing date, subject to the limits of SIPC protection.
Maximum Protection Deadline. The bankruptcy court will establish a deadline for filing of customer claims. This deadline is usually 60 days after the date the notice of the proceeding is published, but could be as little as 30 days after the publication date. The deadline appears in the published notice and a copy of the notice is mailed to customers.
Six Month Deadline for All Claims. The six-month deadline for all claims is set out in the Securities Investor Protection Act. Federal law makes SIPC protection unavailable for any claim that is received more than six months after the publication date. Except for some very narrow exceptions, there are no grounds for time extensions beyond the six month deadline.