For directors of companies in financial difficulty, seeking advice from an insolvency practitioner can feel daunting. Often, through no fault of their own, a business they have spent years building comes to an abrupt end.
While putting a company into liquidation or administration can bring the stress of balancing competing claims from creditors, employees, suppliers, and HM Revenue & Customs to an end, it can also give rise to a new set of concerns for directors: insolvency claims against directors.
What are insolvency claims against directors?
When a company enters liquidation or administration, the appointed insolvency practitioner has a duty to review the company’s affairs. This review may involve:
- Assessing directors’ conduct leading up to the insolvency
- Investigating company transactions prior to collapse
- Ensuring creditors’ interests were properly considered
Where concerns arise, claims may be brought against directors personally, often referred to as insolvency claims against directors.
Types of claims directors might face
Directors can face a variety of claims, including:
- Claims brought by liquidators or administrators
- Allegations of wrongful or unlawful conduct
- Investigations by the Insolvency Service, including possible director disqualification
These claims can feel overwhelming, particularly during an already stressful period following company insolvency.
Can these claims be resolved without going to court?
In many cases, yes.
We have extensive experience helping directors address insolvency claims. Early advice and engagement often means claims can be:
- Assessed promptly
- Resolved through negotiation
- Settled without the need for formal court proceedings
Acting early can significantly reduce the personal and financial impact on directors.
Why early advice matters
Delaying legal advice can limit the options available and increase the risk of formal proceedings.
If you are facing:
- Claims from a liquidator or administrator, or
- The risk of director disqualification
prompt legal guidance can help protect your position and improve outcomes.
We’re here to help
Our Insolvency Team regularly advises directors on claims from liquidators, administrators, and the Insolvency Service, including director disqualification matters.
Get in touch with our team today for specialist advice, speak to a member of our team on 0800 118 1500 or complete the form below.
Disclaimer
This blog was written by Stuart Turner, Director & Solicitor in our Dispute Resolution Team. The contents of this blog, or any other published by Talbots Law, cannot be considered as legal advice so you should take no action without prior consultation with a qualified solicitor or legal professional. The contents of this blog refers to the process in England and Wales.