Insolvency

What is Insolvency?

Insolvency is a state where an individual or a company is unable to pay their debts as they fall due. This complex area is governed by a comprehensive body of Insolvency law, primarily the Insolvency Act 1986.Dealing with these regulations requires specialist knowledge and experience. This is where insolvency lawyers become crucial. They provide critical legal advice on the full spectrum of insolvency matters, from initial signs of financial distress to formal insolvency proceedings.

The journey of a company in financial distress often depends on when expert advice is received. Early engagement opens up proactive recovery options, while delay can lead to formal insolvency proceedings.

What does an insolvency solicitor do?

Engaging a solicitor early can open up options that may not be available later, such as corporate restructuring or informal arrangements with creditors. Our law firm's specialist insolvency solicitors, recognised for their expertise and works closely with clients and other professionals, including licensed insolvency practitioners, to devise and implement effective strategies. We ensure you understand your options and obligations, helping you to make informed decisions under pressure.

Insolvency Services for Businesses:

For businesses, options range from rescue and corporate restructuring to formal liquidation. We advise on:

• Administration proceedings: A procedure designed to rescue a company or achieve a better result for creditors than a liquidation.
• Pre-pack administration: Where the sale of the business is arranged before an administrator is formally appointed.
• Company Voluntary Arrangements (CVAs): A formal agreement with creditors to repay debts over a set period.
• Company moratorium: A breathing space for eligible companies to pursue a rescue plan, free from creditor action.
• Liquidation processes: Including creditors voluntary liquidation (initiated by the company) and compulsory liquidation (often triggered by winding-up petitions from creditors). This process involves an Official Receiver or insolvency practitioners realising the company’s assets, which can include the asset sale of property and real estate to satisfy creditor claims.

Insolvency Services for Individuals

For individuals, the landscape is different but equally complex. Recent figures show that in August 2025, 11,348 individuals entered insolvency in England and Wales, a 16% increase from the previous year. We offer compassionate and clear advice on:

• Individual Voluntary Arrangement (IVA): A legally binding agreement to repay a portion of personal debt, often consisting of unsecured debts, over time.
• Bankruptcy: A formal process often initiated by bankruptcy petitions after a statutory demand has gone unpaid. A Trustee in bankruptcy is appointed to manage your assets.
• Personal debt restructuring: Exploring all legal avenues to manage and resolve overwhelming personal debt.

Throughout any Corporate Recovery and Insolvency process, our role is to protect your legal position, negotiate with stakeholders, and guide you toward the most favourable resolution.

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For expert legal advice you can rely on, please contact our dedicated team today to talk about your situation in confidence.

Dealing with financial distress and insolvency law requires more than just an understanding of the rules; it demands strategic insight, legal expertise, and decisive action. Whether you are proactively strengthening your business against future risks, seeking a path to Corporate Recovery, or facing the difficult realities of personal or corporate insolvency, the guidance of specialist insolvency solicitors is invaluable.

From advising a Company director on their legal duties and exploring corporate restructuring to assisting individuals with an Individual Voluntary Arrangement (IVA) or responding to a statutory demand, expert legal advice provides clarity and control. By engaging with insolvency solicitors early, you can access a wider range of solutions and ensure your interests are protected throughout any insolvency proceedings. The right legal partner can make the difference between a managed resolution and a devastating outcome. If you are facing financial uncertainty, do not hesitate to seek the support you need to direct the path ahead.