Insolvency and Bankruptcy

With Your Legal GP

If your business is struggling and you find yourself in debt you may have to consider insolvency, or as a last resort bankruptcy to avoid court or selling your assets off to clear your debts. Insolvency usually precedes bankruptcy. The Government provides the means to search the bankruptcy and insolvency register to alert creditors and members of the public.

Key Insolvency Statistics

• Company insolvencies: In 2024 23,872 registered companies were declared insolvent; 18,840 were creditors voluntary liquidations (CVLs), 3,230 were compulsory liquidations and 1597 were administrations.
• Restructuring opportunities: The insolvency process offers an opportunity to restructure your debts, liquidate certain assets to reach the most favourable outcome and in some instances rescue your business.
• Personal bankruptcy: As a last resort you may have to declare bankruptcy however this brings into play personal assets such as your house or car. In 2023-24 1.759 creditors petitioned for bankruptcy orders against debtors.
• Strict regulations: Bankruptcy is subject to strict rules and usually lasts 12 months. Failure to comply with these rules is a criminal offence and in 2023-24 134 debtors were subject to bankruptcy restrictions.

Whatever your position Your Legal GP can offer cost-effective mediation to facilitate quicker resolution of your debt problems, restructuring the outcome for the optimal solution for all parties involved.

Search bankruptcy and insolvency register