Preferences and Transactions at Undervalue in Company Liquidation
When a company enters liquidation in the United Kingdom, the liquidator has a legal duty to investigate the company’s financial affairs and review transactions that took place before insolvency. One important part of this process involves examining whether directors or the company transferred money or assets in a way that...
The Rise of Zombie Companies in the United Kingdom
In recent years, the term “zombie company” has become increasingly common in discussions around the UK economy and corporate insolvency. While many businesses survived the financial pressures caused by the pandemic, inflation, supply chain disruption, and rising borrowing costs, a growing number are now operating in a financially fragile state....
The Difference Between Cashflow Insolvency and Balance Sheet Insolvency
In the United Kingdom, insolvency is not always as straightforward as a company simply running out of money. Under the Insolvency Act 1986, a business may be considered insolvent in different ways depending on its financial position and ability to meet obligations. Two of the most important legal concepts in...
Why UK Company Insolvencies Are Still Near 30-Year Highs in 2026
Despite inflation easing compared to the sharp increases seen in 2022 and 2023, company insolvencies across the United Kingdom remain stubbornly high in 2026. Many businesses expected financial conditions to improve once inflation started slowing, yet insolvency figures continue to reflect severe pressure across multiple sectors of the economy. According...
Can Directors Be Investigated After Forced Liquidation?
When a company enters forced liquidation (also known as compulsory liquidation), it is usually the result of serious financial distress and creditor pressure, often led by HMRC. For directors, one of the biggest concerns at this stage is whether their actions will be investigated and what the consequences could be....
Why Directors Are Choosing Controlled, Voluntary Closure Instead of Forced Liquidation
In today’s challenging economic climate, more UK company directors are facing difficult decisions about the future of their businesses. With rising costs, increasing pressure from HMRC, and tightening cash flow, insolvency is becoming a reality for many. However, one clear trend has emerged: directors are increasingly choosing controlled, voluntary closure...
What Is a Phoenix Company and How Does It Work?
When a company faces financial difficulty, liquidation can sometimes feel like the end of the road. However, in certain circumstances, directors may have the opportunity
Who Can Legally Carry Out Insolvency Work in the UK? Lessons from Davis Acquisitions Ltd
When a company begins to struggle financially, directors often turn to online advice or seek professional help for liquidation or rescue options. However, not all
Construction companies that couldn’t survive in 2025
The UK construction sector entered 2025 already weathered by inflation, interest rate pressure and persistent supply chain turbulence. Forecasts for the wider economy suggested only
Are Crypto Assets Property in Insolvency? Understanding the 420% Surge in Cases
The rapid rise of cryptocurrency and digital assets has changed the financial landscape, and now it is reshaping insolvency and bankruptcy too. Over the past
The Role and Regulation of Insolvency Practitioners
If you’re considering closing your company or dealing with business debt, chances are you’ve come across the term “insolvency practitioner” or IP for short. But
What Happens to Contracts & Lease Obligations After Liquidation?
When a company goes into liquidation, directors are often left wondering what happens to the contracts and lease obligations they’ve signed while trading. Whether it’s
