Insolvency

Whatever your debt circumstances, our experienced team provide advice to insolvency practitioners, businesses, individuals and corporate lenders to assist with both practical and legal issues at what is commonly a difficult time.

More about Insolvency

Insolvency is a legal term used to describe a situation where a person or business is no longer able to meet their financial obligations and is unable to pay their debts on time. It is a form of financial distress that can be resolved through bankruptcy, liquidation, administration, restructuring, or other arrangements with creditors.

We are able to assist in all areas of contentious and non-contentious insolvency to bring about an effective solution to your problems.

We have good relationships with many insolvency practitioners and can work alongside them to provide guidance and a swift conclusion to any matter.

Our combined experience covers the following:

Our combined experience covers the following:

  • Restructuring

  • Refinancing

  • Insolvency appointments

  • Sale and acquisition of distressed businesses

  • Acquisitions from Administrators

  • Bankruptcies

  • Winding up Petitions

  • Creditors Voluntary Arrangements

  • Directors disqualification

  • Misfeasance and directors duties

  • Use of prohibited names (section 216)

  • Transactions defrauding creditors

  • Transfers at an undervalue

Why choose our insolvency solicitors?

Why choose our insolvency solicitors?

Our insolvency solicitors are dedicated to providing expert legal advice and support to individuals and businesses facing financial difficulties. With years of experience in the field, we have a proven track record of successfully guiding clients through the insolvency process, helping them to achieve the best possible outcome. Our team is committed to providing a personalised service, tailored to meet the specific needs of each client. We pride ourselves on our professionalism, integrity, and commitment to achieving the best possible results for our clients. Choose us for expert legal advice and support when you need it most. Who do our insolvency solicitors help? At Forbes Solicitors, our insolvency solicitors help individuals, businesses, and creditors who are facing financial difficulties or insolvency issues.

How can our insolvency lawyers help?

How can our insolvency lawyers help?

Our insolvency lawyers can help individuals and businesses navigate the complex legal process of insolvency, including bankruptcy, liquidation, and debt restructuring. We can provide advice on the best course of action for your specific situation, negotiate with creditors, and represent you in court if necessary. Our goal is to help you achieve the best possible outcome and minimise the impact of insolvency on your financial future.

Additional Information

What does an insolvency solicitor do?

An insolvency solicitor provides legal advice and representation to individuals and businesses facing financial difficulties, including bankruptcy, liquidation, and administration. They assist with debt restructuring, negotiations with creditors, and court proceedings related to insolvency. They also advise on directors' duties and liabilities, and assist with the sale of assets to repay debts.

What is an example of insolvency?

An example of insolvency would be a company that is unable to pay its debts as they become due, or whose liabilities exceed its assets. This could result in the company being forced into liquidation or administration, where its assets are sold to pay off creditors. Another example could be an individual who is unable to pay their debts and is declared bankrupt.

What is insolvency and how does it affect businesses?

Insolvency is a situation where a business is unable to pay its debts as they fall due or has more liabilities than assets. It can lead to the closure of the business, liquidation of assets, and potential legal action against the directors. there are various insolvency procedures available, such as administration, liquidation, and company voluntary arrangements, to help businesses in financial distress.

What are the different types of insolvency procedures available for businesses?

The different types of insolvency procedures available for businesses are administration, liquidation, company voluntary arrangement (CVA), and individual voluntary arrangement (IVA). Administration is a process where a company is placed under the control of an insolvency practitioner to restructure and save the business. Liquidation is a process where a company's assets are sold to pay off its debts. CVA is a process where a company agrees to pay its creditors over a period of time. IVA is a process where an individual agrees to pay their debts over a period of time.

How can a business determine if it is insolvent?

A business is considered insolvent if it is unable to pay its debts as they fall due or if its liabilities exceed its assets. This can be determined by conducting a cash flow analysis and reviewing the company's financial statements. the Insolvency Act 1986 provides guidance on the definition of insolvency and the procedures for dealing with insolvent companies.

What are the consequences of insolvency for business owners and directors?

If a business becomes insolvent, the directors may face personal liability for the company's debts. They may also be disqualified from acting as directors in the future. The business may be liquidated, and its assets sold to pay off creditors. The reputation of the business and its owners may also be damaged.

What are the steps involved in a formal insolvency process?

The steps involved in a formal insolvency process are as follows:

Appointment of an insolvency practitioner: The first step in a formal insolvency process is the appointment of a licensed insolvency practitioner (IP) who will act as the administrator or liquidator of the company. Investigation and assessment: The IP will investigate the company's financial position and assess the options available to maximize returns to creditors. Notification of creditors: The IP will notify all creditors of the company's insolvency and provide them with details of the process. Creditors' meeting: A meeting of creditors will be held to discuss the company's financial position and the proposed course of action. Administration or liquidation: Depending on the company's financial position, the IP will either administer the company to help it restructure and continue trading or liquidate the company and sell its assets to pay off creditors. Distribution of funds: Once the assets have been sold, the IP will distribute the funds to the creditors in accordance with the priority of their claims. Closure: The final step in the formal insolvency process is the closure of the company, which involves deregistering the company and notifying relevant authorities of its closure.

Can a business continue to trade during insolvency?

Yes, a business can continue to trade during insolvency but it depends on the type of insolvency procedure being used. In some cases, such as administration, the business can continue to trade while a plan is put in place to repay creditors. However, in other cases, such as liquidation, the business will cease trading and its assets will be sold to repay creditors.

How can a business deal with creditor pressures and demands during insolvency?

A business facing creditor pressures and demands during insolvency can seek the assistance of an insolvency practitioner who can help negotiate with creditors and develop a repayment plan. The business can also consider entering into a Company Voluntary Arrangement (CVA) or administration, which can provide protection from legal action by creditors while a restructuring plan is developed. It is important to seek professional advice and act quickly to address creditor demands.

What options are available to rescue a financially distressed business?

There are several options available to rescue a financially distressed business including negotiating with creditors, restructuring the business, entering into a Company Voluntary Arrangement (CVA), or filing for administration or liquidation. Other options may include seeking financial assistance from the government or private investors, or selling the business to a new owner. The best course of action will depend on the specific circumstances of the business and its financial situation.

What are the implications of personal liability for directors in an insolvency situation?

Directors can be held personally liable for the debts of a company in an insolvency situation if they have acted negligently or fraudulently. This can result in legal action being taken against them, including fines, disqualification from acting as a director, and even imprisonment. Directors must ensure they act in the best interests of the company and its creditors to avoid personal liability.

Insolvency Litigation FAQs

We are struggling to pay our bills – what can we do?

If you are struggling to pay debts as they fall due, you may wish to take preventative action to stop you being wound up by a creditor or having to appoint an administrator.

We can assist in you exploring options such as a CVA, company restructuring or if necessary the dissolution of the company.

How long will my bankruptcy last?

You are discharged from bankruptcy after 12 months however it will stay on your record for 6 years.

How much does a company need to owe to serve a winding up petition?

To wind up a company you must be owed £750 or more and be able to prove that the company cannot pay you.

Our dedicated Insolvency team

Chris Bowers.jpg

Partner and Head of Department, Insolvency

Chris Bowers

harry-silverman.jpg

Paralegal, Insolvency

Harry Silverman

David Filmer.jpg

Partner, Head of Department, Corporate

David Filmer

Related News & Insights

Contact Us

If you have an enquiry then please fill in your details and someone will contact you.

0800 689 0831 - Monday - Friday: 09:00 - 17:00

Request a call back

By submitting your enquiry you agree that Forbes can contact you.

© 2024 Forbes Solicitors is the trading name of Forbes Solicitors LLP Offices in Preston, Manchester, Salford, Blackburn, Blackpool, London and Leeds UK Main Office: Rutherford House, 4 Wellington Street (St Johns), Blackburn, Lancashire, BB1 8DD • Vat No: 174 394 344 Forbes Solicitors is authorised and regulated by the Solicitors Regulation Authority (SRA No. 816356). Details of the SRA’s Standards and Regulations can be found here. Authorised and regulated by the Financial Conduct Authority.

This website has implemented reCAPTCHA v3 and your use of reCAPTCHA v3 is subject to the Google Privacy Policy and Terms of Use.