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Formal insolvency covers the official processes used when a business cannot pay its debts, including administration, liquidation (compulsory or voluntary), and arrangements overseen by the courts and the Insolvency Service. A solicitor acts for directors, creditors or the company, drafting petitions, appointing administrators or liquidators, negotiating arrangements with creditors, and advising on asset realisation, claims, and compliance with regulatory duties throughout the process.
Insolvency processes involve technical filings, court applications, and coordination with insolvency practitioners, the Official Receiver, and creditors. The solicitor’s role includes drafting and submitting petitions or notices, advising on strategic options, and navigating statutory duties and deadlines as assets are realised and distributions are made.
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