Insolvency

Our insolvency department offers a full range of insolvency advice concerning both companies and individuals. Even licensed insolvency practitioners rely on the department’s expertise.

Our solicitors work with businesses of all sizes across a wide range of sectors providing clarity and advice on insolvency procedures. Whether your business is facing creditor pressure, administration or looking to restructure we have the expertise to advise on the solution which best fits your circumstances.

If you are an individual, we have considerable expertise in advising individuals on bankruptcy and the implications for the debtor. If you are facing insolvency, we can assist with negotiations with creditors to help agree repayment plans on an informal basis or via an Individual Voluntary Arrangement.

Nick Davies

Nick Davies

Partner Litigation
& Dispute Resolution

“When businesses face financial challenges, our Insolvency team provides the strategic guidance and practical solutions needed to navigate difficult times. We combine deep expertise with a supportive approach to help our clients understand their options and chart a path forward.”

Liquidation is the process used to wind up a limited company. In liquidation, the assets and property of the company will be sold to pay back creditors. If the company is solvent on liquidation the money generated may also be distributed amongst shareholders.

Company liquidation has serious implications and should only be considered after seeking professional legal guidance. Please contact us for help and advice on the alternatives which may be available to you.

If you owe money that you cannot pay, you may decide to declare yourself bankrupt or the people you owe money to may apply to make you bankrupt. If you are made bankrupt the things you own can be taken and sold to pay your debts. We can explain exactly what bankruptcy entails and the restrictions and responsibilities that arise when you become bankrupt.

Our solicitors can outline all available courses of action whether you are considering declaring yourself bankrupt, are being threatened with bankruptcy or you wish to challenge the legitimacy of ongoing bankruptcy proceedings. We also act on behalf of clients that are being sued by another individual’s trustee in bankruptcy in the event they are looking to recover funds.

Administration is a formal insolvency procedure where an insolvency practitioner is appointed by either the company directors, the company or a financial institution. An administration usually allows the business to continue trading throughout the process and provides protection against any enforcement action taken by creditors.

There are three common types of administration:

  1. trading administration allows a business to continue trading, allowing employees to remain in a job whilst the sale of the business is considered;
  2. Prepack administration that enables the sale of the business to be pre-arranged before or soon after the administrator is appointed.
  3. Scheme of arrangement whereby a company may enter into a compromise or arrangement with its members or creditors. The relevant Act does not prescribe terms making it flexible. Creditors approval and court permission will be required and the scheme can be used in parallel with more formal insolvency procedures.

Our team can assist both franchisors, franchisees, agents and distributors in establishing and optimising operations including franchise operation structure and documentation, agency and distribution agreements, compliance and the necessary registrations.

Administrative receivership should not be confused with administration. An Administrative Receiver is appointed when a company breaches the terms of its borrowing from a creditor. A receiver is appointed by a floating charge holder e.g. a bank or other creditor who has a charge over all or most of the assets of a company. Receivers have extensive powers and will take possession of the assets on which any loan is charged and realise it for the benefit of the creditors and pay off the company’s debts

Asset tracing is used to investigate how much a debtor is worth in cases where creditors have been unsuccessful in recovering monies and are considering resorting to further court action. It is important to know a realistic figure as even if a court enforces a debt, if the debtor is financially unable to repay the debt, costly litigation can be a waste of time and money.

Conversely, some debtors will attempt to hide their assets from creditors and the court, putting assets in an offshore tax haven or transferring them to a network of trusts and nominal companies. You need to have specialist skills to identify the assets, establish their location and create a strategy to recover them.

When someone is convicted of a crime that has benefited them financially, the Proceeds of Crime Act 2002 enables the prosecution to seek a restraint order and instigate confiscation proceedings. This means they can stop unlawfully acquired funds and assets being hidden, transferred or spent so that they can be recovered.

Our solicitors can advise those affected by confiscation proceedings, including third parties whose property might be at risk of confiscation, including advice on proceedings and negotiating with the authorities.

A Company Voluntary Arrangement is a binding agreement between a business and its creditors to ensure the repayment of all or part of the debt over a specified period of time, through affordable fixed payments.

Our team can help draft a CVA for submission to creditors, advise you on the process and your legal obligations and assist in the following negotiations.

An Individual Voluntary Arrangement (IVA) is an alternative option to bankruptcy for individuals where debts have become unmanageable. An IVA is a legally binding agreement between you and your unsecured creditors – when entering an IVA your creditors agree to freeze any interest and charges by accepting a fixed monthly payment usually over a number of years.

An IVA can be a preferred option for many people as it allows breathing space from creditors and repayments are assessed on what you can realistically afford to repay.

Benefiting from close links to insolvency practitioners, we can provide practical and cost-effective advice on whether an IVA is right for you and can support you through the process from start to finish.

The Law of Property Act 1925 enables a lender to recover their debt on a defaulted property loan. Commonly known as an LPA Receivership, once implemented, the creditor assumes ownership of the debtor’s property and appoints an LPA Receiver to take charge of the property. The debt owed is recovered typically by either selling the property or collecting rental income from it.

We can advise you regarding the next steps you will need to take if you are being threatened by your bank. We can also advise banks in the appointment of the receiver to ensure that you will be able to get your money back.

Restructuring is usually the first stage in the process of agreeing a way forward with creditors in order to manage repayment of debt, without becoming insolvent.

We act for both debtors or creditors, and can help businesses restructure before formal procedures are initiated, negotiate agreements and repayment schedules to enable the creditor to pay off the debt.