Employer verification for in country application?

[brownsofa]

I applied for a switch from WP to Tier 1 on 22 Sept. Called the HO two weeks back and was told my application has been assigned to a CW and is pending verification from my employer (which is incidentally a UK company, now bankrupt!)
My concern is that since the company is bankrupt, they will not get any response to their verification query and I could be waiting months!
Anyway I am surprised they are going the whole verification process since I thought that was done when they doubt the genuineness of docs (no Integra process in the UK) - in my case they were pretty straightforward, except for one payslip which was a copy, signed and stamped by the employer.

Anyone else who has had an in country application being sent for verification? How long could this period last?

[zishi]

I think the reason for refusal will be "Documents cannot be verified". However it would be great if some one from this forum can share their first hand experience.