Insolvency is a process for managing debt if individuals or companies can’t make repayments when they’re due. It’s intended to help creditors – the people that are owed money – get as much money back as possible.
Individuals and companies can start insolvency voluntarily, and negotiate Voluntary Agreements with their creditors to arrange the best way of repaying the debt for both parties.
If not, creditors can force their debtors into insolvency instead. This outcome is much more restrictive and the debtor can have repayments and other controls forced on them.
Insolvency works slightly differently for individuals and companies:
Individuals
If you can’t pay back your personal debts on time, you can go insolvent by applying for bankruptcy, an Individual Voluntary Arrangement (IVA), or a Debt Relief Order (DRO). This will help you organise reduced repayments and write off debts that you’re unable to repay – we’ll advise which is the best option for you.
In some cases, a creditor can force you into insolvency by applying to the court for a bankruptcy order if you don’t repay your debts. This usually takes at least three to four months.
Companies
Companies that can’t pay their debts can also organise voluntary arrangements to manage repayments. Other, more restrictive options in more serious cases include liquidation and administration.
Creditors can force you into administration in a matter of hours if your debt has lapsed for too long.
Once both individuals and companies are insolvent, their assets will be sold to repay creditors in a strict order of priority.
We understand that paying for our services is a concern if you’re already struggling with debt repayments or if you’re owed money by someone else.
We can accept a variety of different payment methods depending on your situation, including hourly rates, fixed costs, or Conditional Fee Agreements (also known as ‘no win no fee’ agreements).
We also work with a number of litigation funders who can finance the cost of claiming debt from an insolvent person or company. If the claim is successful, the litigation funder receives a pre-agreed share of the final claim. Litigation funders can also buy your claim outright for a lump sum before litigation begins.
We’ll talk through your payment options in detail before beginning any work of your behalf and help you decided the best arrangement for you. Call us today on 0370 1500 100 to find out more.
Confidentiality is a key concern in everything we do and we appreciate how sensitive debt and insolvency can be, particularly for business people and anyone in the public eye.
When negotiating with your creditors, we can ensure that any settlements include a confidentiality agreement to help keep the matter private.
We can also work with colleagues specialising in reputation management to control the impact of any information that has already leaked. See our Defamation & Reputation Management page for more information.
Our team includes seven Partners and over 20 staff who specialise in professional and confidential services for anyone affected by insolvency.
We take the time to understand the often complex and sensitive circumstances involved and treat each client with a personal, pro-active, and tailored approach.
We have extensive experience with advising and acting for both debtors and creditors. As part of one of the largest law firms in the UK, we can handle complex, high-value cases around the country.
Meet the team
