Expert Insolvency Legal Advice in the UK
Insolvency arises when an individual or company cannot meet debts as they fall due, or where liabilities exceed assets. Whether you are facing financial pressure or exploring recovery options, timely advice is essential.
Our insolvency lawyers advise on:
- Corporate insolvency procedures
- Director duties and risks
- Business restructuring and recovery
- Personal insolvency solutions
- Creditor disputes and enforcement
We help you understand your options and obligations, ensuring you take the most appropriate route forward.
Corporate Insolvency Services
We support directors, shareholders and stakeholders across all major insolvency processes.
Administration
Administration protects a company from creditor action while restructuring takes place. A licensed insolvency practitioner is appointed to manage affairs, with the aim of rescuing the business or achieving a better outcome for creditors than liquidation.
Pre-pack Administration
A pre-pack involves arranging the sale of a business before entering administration, with completion shortly after appointment. This can preserve value, protect jobs and ensure continuity, but must comply with strict regulatory requirements.
Liquidation
Liquidation is the formal process of closing a company and distributing its assets to creditors. It may be appropriate where recovery is no longer viable.
Step-by-Step Liquidation Process
Liquidation follows a structured legal process designed to ensure fair treatment of creditors.
While the exact procedure depends on the type of liquidation, the typical process includes:
- Decision to liquidate
Directors or creditors determine that the company cannot continue trading and that liquidation is appropriate. - Appointment of a liquidator
A licensed insolvency practitioner is formally appointed to take control of the company. - Cessation of trading
The company usually stops trading, and directors’ powers cease. - Realisation of assets
The liquidator identifies and sells company assets, including property, stock and receivables. - Investigation of director conduct
The liquidator reviews the actions of directors prior to insolvency, including potential wrongful trading or transactions at undervalue. - Distribution to creditors
Funds are distributed according to statutory priority: - Secured creditors
- Preferential creditors
- Unsecured creditors
- Final closure and dissolution
Once the process is complete, the company is removed from the Companies Register.
Taking early advice before liquidation begins can improve outcomes and reduce exposure for directors.
Compulsory Liquidation
This occurs when a creditor petitions the court for a winding-up order. Directors lose control of the company, and recovery prospects are limited.
Creditors’ Voluntary Liquidation (CVL)
A CVL is initiated by shareholders where the company is insolvent. It allows directors to take proactive steps and can provide a more orderly wind-down.
Members’ Voluntary Liquidation (MVL)
An MVL applies where a company is solvent and can pay its debts in full. It is often used as a tax-efficient way to distribute assets to shareholders.
Director Responsibilities and Risks
Directors must act in the best interests of creditors once insolvency is likely. Failure to do so can result in personal liability, disqualification, or claims for wrongful trading.
Our solicitors advise directors on:
- Duties during financial distress
- Avoiding personal liability
- Responding to creditor pressure
- Defending insolvency-related claims
Early advice can significantly reduce risk.
Will My Company Be Dissolved?
Dissolution removes a company from the Companies Register, typically for dormant or non-trading businesses. However, it is not a substitute for liquidation where debts exist.
Creditors can challenge dissolution, and claims may continue for many years. In some cases, a company can be restored and placed into liquidation.
We can advise whether dissolution is appropriate or if a formal insolvency process is required.
Personal Insolvency Advice
We provide clear, supportive advice for individuals facing financial difficulty, including company directors.
Voluntary Arrangements
Voluntary arrangements allow individuals, companies or partnerships to reach a legally binding agreement with creditors. Repayments are structured over time, often enabling the business or individual to continue operating.
Approval requires agreement from 75% of creditors by value.
Bankruptcy
Bankruptcy is a formal court process where an individual’s assets are managed by a trustee.
Assets may be realised and distributed to creditors according to legal priority.
We guide you through the process, explain the consequences, and explore alternatives where appropriate.
Why Choose Lewis Nedas for Insolvency Matters?
Our insolvency solicitors combine technical expertise with a practical, commercially focused approach. We act for clients across sectors including financial services, retail, hospitality, healthcare and energy.
Clients choose us because we offer:
- Clear and actionable advice
- Experience in complex and high-value cases
- Responsive and supportive service
- Strategic solutions tailored to your goals
We work closely with insolvency practitioners, accountants and other professionals to deliver joined-up advice.
Frequently Asked Questions
What is insolvency?
Insolvency is when you cannot pay debts as they fall due or liabilities exceed assets.
What is the difference between liquidation and administration?
Liquidation closes a company. Administration aims to rescue or restructure it.
Can directors be personally liable for company debts?
Yes, if they breach duties or continue trading wrongfully.
How long does bankruptcy last?
Typically 12 months, though financial restrictions may last longer.
Is a voluntary arrangement better than bankruptcy?
It can be, as it allows structured repayment and may protect assets.
Contact our Insolvency Solicitors in London
If you are facing financial difficulty or need urgent insolvency advice, our experienced team is here to help. Call 020 4572 1313 or complete our online contact form to speak with a specialist insolvency solicitor today.
