Insolvency Solicitors
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Insolvency Solicitors
If your business is struggling with cash flow, there may still be a way to resolve the situation. Whether your challenges are temporary or you’ve reached a point where recovery seems out of reach, seeking early professional legal advice will help you understand your options and prevent matters from worsening.
Perhaps you are behind on payments, have received a winding-up petition, or are a director facing a claim, our partner-level insolvency lawyers are here to help. We offer practical, tailored guidance to suit you and your unique circumstances.
For your free initial consultation, please call our insolvency solicitors in London today on 020 7467 3980. Alternatively, you can complete the enquiry form on this page and a member of our team will be in touch.
Our restructuring and insolvency services
Bringing extensive experience and a results-driven approach to a wide range of corporate insolvency issues, we pride ourselves on quickly identifying your core challenges and working efficiently to resolve them.
We assist our clients with:
- Defending directors: Defending against claims of misfeasance, breach of fiduciary duties, fraudulent trading, wrongful trading, transactions at undervalue, and preference payments.
- Responding to winding-up petitions: Providing robust legal defence to protect businesses.
- Creditors voluntary liquidations (CVL): Guiding companies through the voluntary liquidation process.
- Compulsory liquidation: Advising on the process of court-ordered liquidation.
- Trading while insolvent: Defending and pursuing claims related to trading while insolvent.
- Validation orders: Assisting with court applications to safeguard company transactions.
- Administrations, restructuring, and business sales: Managing the administration process or facilitating the sale of companies.
- HMRC Investigations: Advising and representing companies under investigation.
- Preference payments and UV transactions: Defending and pursuing claims related to preferential payments or sales at less than market value.
- Asset recovery: Assisting insolvency practitioners in recovering assets for creditors.
If your company is facing insolvency, or you are a creditor of an insolvent business and want to find out what you should do next, please call our corporate insolvency lawyers on 020 7467 3980.
Who our corporate insolvency lawyers help
Our insolvency lawyers provide comprehensive support to a wide range of clients, including:
- Business owners and directors: Facing cash flow issues, creditor demands, or potential insolvency.
- Insolvent companies: Seeking guidance on liquidation, administration, or restructuring.
- Creditors: Pursuing debt recovery, including via claims against insolvency practitioners.
- Investors and stakeholders: Protecting their interests when a business faces financial instability.
- Sole Traders and Partnerships: Addressing financial challenges and in need of bespoke legal solutions.
- Liquidators: Pursuing claims against directors or shareholders of insolvent companies.
- Insolvency practitioners: Recovering assets and addressing complex insolvency matters.
- Shareholders: Bringing claims against directors for actions leading to insolvency.
Whether you’re protecting your interests, pursuing claims, or navigating insolvency, our team is here to help with sensitive, practical, and creative advice.
Corporate restructuring and insolvency
Navigating financial difficulties can be challenging, but it is often possible to restructure and recover with the right guidance.
Providing expert legal advice when you need it most, our restructuring and insolvency lawyers provide tailored support to help businesses address financial distress, protect assets, and explore solutions that align with their goals.
Restructuring solutions
A proactive restructuring strategy can help stabilise your business when facing financial challenges. Our services include:
- Administration: Supporting businesses in administration to protect assets while exploring recovery options.
- Debt restructuring: Renegotiating terms with creditors to create more manageable repayment plans.
- Corporate restructuring: Advising on restructuring operations, management, or ownership to improve financial health.
- Time-to-Pay arrangements: Assisting with agreements to spread tax liabilities with HMRC.
- Refinancing and investment support: Exploring funding opportunities to strengthen cash flow and ensure sustainability.
When restructuring is not feasible, we provide clear, compassionate guidance to help you navigate insolvency proceedings and minimise risks.
Our services include:
- Liquidation: Advising on liquation proceedings including creditors’ voluntary liquidation (CVL) and compulsory liquidation.
- Directors’ duties: Ensuring directors understand their legal responsibilities and risks during company insolvency.
- Claims defence: Representing directors against claims such as wrongful trading, fraudulent trading, and undervalue transactions.
Whether restructuring to regain stability or navigating the complexities of insolvency, we are committed to achieving the best possible outcome for you and your business.
Liquidator claims against directors
When a company enters liquidation, liquidators are tasked with recovering funds to maximise returns to creditors. This often involves pursuing claims against directors for actions that contributed to the company’s financial difficulties or caused losses to creditors.
Our insolvency lawyers provide robust legal advice to both liquidators, creditors, and directors. Building strong claims to recover assets for creditors and defend directors against allegations, we ensure your rights are protected, and a fair outcome is achieved.
Below are some of the common liquidator claims brought against directors.
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Misfeasance
Misfeasance occurs when directors breach their fiduciary duties, causing financial harm to the company or its creditors. Misfeasance violates the duties that directors owe during the insolvency process.
Common examples include:
- Improper use of company funds
- Failing to maintain accurate accounts
- Acting in bad faith.
Providing expert legal support for misfeasance claims – whether defending directors against allegations or assisting liquidators, administrators, and creditors in pursuing valid claims – our team helps to achieve a fair and just resolution.
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Transactions at undervalue
A transaction at undervalue occurs when a company transfers assets for significantly less than their market value, often leaving creditors at a disadvantage. Liquidators may challenge such transactions if they occurred within the relevant statutory period before insolvency and seek to reverse them.
If someone accuses you of being involved in a transaction at undervalue, early legal support is vital. Our highly skilled insolvency solicitors will advise you on your options and build a robust case to protect your interests. We also offer tailored advice to liquidators seeking to pursue directors for transactions at undervalue.
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Overdrawn directors loan
An overdrawn directors’ loan account can become a significant issue in insolvency proceedings. Liquidators often view outstanding balances as recoverable assets, requiring directors to repay these amounts to the company.
Our corporate insolvency lawyers help directors facing repayment demands and liquidators seeking to recover funds from overdrawn loan accounts. We provide practical strategies to address claims and minimise financial liabilities.
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Wrongful trading
Wrongful trading occurs when directors continue to operate a business despite knowing there is no realistic chance of avoiding insolvency. If found guilty of wrongful trading, directors can be held personally liable for the company’s debts.
For liquidators and creditors, we provide expert guidance to build strong cases against directors whose actions may have caused financial harm. For directors, we offer tailored advice and robust defences to protect their interests and minimise personal liability.
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Antecedent transactions
Antecedent transactions are financial dealings made by a company before insolvency that may disadvantage creditors. Liquidators can challenge antecedent transactions if they occurred within a specific time frame.
Antecedent transactions include:
- Preferential payments
- Transactions at undervalue.
Our specialist insolvency solicitors have many years experience in providing practical advice to directors defending against antecedent transaction claims, and supporting liquidators in pursuing such claims.
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Preferential payments
Preferential payments occur when a company prioritises paying one creditor over others, contrary to insolvency law. Liquidators may seek to recover such payments, particularly if they occurred shortly before insolvency.
For directors accused of authorising preferential payments, acting quickly is essential. When you appoint us, we’ll guide you through the legal complexities and build a strong defence to protect your interests and minimise financial exposure.
We also offer comprehensive support for liquidators seeking to recover preferential payment funds.
Responding to winding up petitions
If your company cannot pay its debts, it might be served with a winding-up petition. If the petition is successful, your business will face compulsory liquidation.
If you have received a winding-up petition, seek legal advice ASAP. Not least because you can only make payments – for example, to staff or your landlord – if you get court approval. This is called a validation order, and we can help you apply to the court for permission.
Don’t delay – get on the phone and get representation from our expert corporate insolvency lawyers on 020 7467 3980.
Reasons to choose Summit Law
Our experienced corporate insolvency lawyers offer a bespoke service that caters to your needs. From start to finish, we are on your side during what can be one of the most emotionally draining and troubling times of your business life.
Sensitive to your needs
Our team combines thoughtful and intelligent legal advice with a highly personable approach. We recognise that every client’s circumstances are unique and that insolvency matters are often delicate and emotionally charged.
Beyond legal strategies, we understand the psychological pressures directors and creditors face and navigate these complexities with empathy and care. Our goal is to make the process as manageable and reassuring as possible, helping you feel supported every step of the way.
Specialist insolvency lawyers
Our specialist team of corporate insolvency lawyers are recognised leaders in the field. With a wealth of expertise in handling complex and high-stakes cases, we deliver innovative and effective solutions for businesses, directors, and creditors alike.
Whether defending directors against claims, pursuing creditors’ rights, or advising on international insolvency issues, we bring the technical knowledge and strategic insight needed to achieve the best outcomes.
Comprehensive insolvency support
As specialist corporate insolvency solicitors, we are equipped to handle a wide range of issues, from winding up petitions and liquidator claims to asset recovery and restructuring advice.
No matter how complex your situation, our team provides the guidance and representation you need. In particular, we can assist with cross-border and international offshore dimension issues.
Transparent pricing
Superior legal advice can be a significant investment. That’s why we offer several funding options to ensure you have access to the very best litigation lawyers. With an upfront estimate before beginning your case and regular updates as things progress, there are never any unexpected surprises.
Insolvency solicitors London - FAQs
Business insolvency occurs when a company cannot pay its debts as they fall due or when its liabilities exceed its assets. It is a critical financial state requiring swift and professional advice to explore options like restructuring, administration, or liquidation.
An insolvency practitioner (IP) is a licensed professional responsible for handling the affairs of insolvent companies or individuals. They may act as liquidators, administrators, or trustees, ensuring assets are distributed fairly among creditors.
Insolvency is the financial state of being unable to pay debts. Bankruptcy is a specific legal process for individuals, whereas companies may undergo liquidation or administration.
Insolvent trading can be a civil or criminal offence if directors continue trading while knowing the company cannot avoid insolvency, leading to increased debts for creditors.
When a company declares insolvency, it typically ceases trading and its assets are assessed. Depending on the circumstances, options may include administration, voluntary liquidation, or compulsory liquidation through a court process.
An insolvent company can trade in certain circumstances, such as during administration, but strict conditions apply to protect creditors’ interests. Legal advice is essential to avoid potential claims of wrongful trading.
A winding-up petition is a court order that forces an insolvent company into compulsory liquidation. This is a process in which the court appoints an Official Receiver to liquidate all of the company’s assets to repay creditors. The application is known as a winding-up petition.
A statutory demand is a form of written warning from a creditor. It states that if you do not pay your debt or come to another arrangement acceptable to the creditor, they may start court proceedings to put your company into liquidation.
Antecedent transactions are specific types of transactions made before a company’s insolvency. They may be reversible by a liquidator or administrator if the company was insolvent when they were made or because the company became insolvent at a later date.
A validation order is an order of the court that authorises and ‘validates’ transactions going through a business bank account, even though a winding-up petition has been presented. In essence, the order releases the account and allows certain transactions to go through, perhaps a payment of rent to the landlord or staff wages.
A private examination is a legal process used during corporate insolvency to gather information about a company’s financial affairs. Liquidators or administrators can request that the court order directors, former directors, or other relevant parties attend and answer questions under oath. This helps uncover details about the company’s transactions, assets, and liabilities, which may not otherwise be available.
Our solicitors frequently attend these examinations to provide legal support and ensure directors’ rights are protected. Having an experienced insolvency expert present can help you navigate this often complex and high-pressure situation effectively.
A transaction avoiding creditors happens when a company or individual transfers assets or money to someone else, making it harder for creditors to recover what they are owed. They are also called antecedent transactions.
In some instances, a transaction avoiding creditors can be challenged to ensure assets are returned to the insolvent estate and fairly shared among all creditors. This process is governed by section 423 of the Insolvency Act 1986.
Contact our corporate insolvency solicitors
Insolvency can be stressful, but it doesn’t have to be overwhelming. Summit Law’s insolvency solicitors help you devise clear strategies and make informed decisions at every stage. If liquidation is the only viable option, we will vigorously defend your interests while keeping your goals and objectives at the forefront.
We offer all prospective clients a free, no-obligation initial telephone consultation. This is designed to give you an overview of potential courses of action, and gives you a chance to get to know us, and for us to understand your needs.
For your free consultation, simply call our corporate insolvency lawyers on 020 7467 3980. Alternatively, complete the online enquiry form, and a member of our team will call you back to discuss your situation.
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