Corporate insolvency

There are two areas of law to which insolvency relates. Insolvency law can refer to both personal insolvency (bankruptcy) and corporate insolvency. An insolvent company may be put into liquidation, whereby all assets are taken and shared between the creditors. Corporate insolvency is fundamentally different from personal insolvency in that with corporate insolvency, at the end of liquidation, the company ceases to exist.

There are various alternative processes applicable to companies which may enable the company to survive the insolvency. If a company goes into administration, for example, it is possible for the company to recover and return to normal operation. It is, however, more likely that the company will, following administration, go on to be liquidated. It very much depends on the assets, as recent examples involving football clubs in England and Scotland have demonstrated.

Corporate insolvency and insolvency law in general can be complex. There are various provisions that come under the remit of insolvency law, such as distribution of assets, the order of payment for creditors and technicalities in registration procedures that would require assistance from an expert in insolvency law.

If you would like to obtain legal advice on corporate insolvency or general advice on insolvency law, Contact Law can put you in touch with a local specialist Insolvency Solicitor free of charge. So, if you have any questions or would like our help in finding local Insolvency Solicitors please call us on 0800 1777 162 or complete the web-form above.