Insolvency and Restructuring Solicitors

Q: What is wrongful trading and how do I avoid it?

Under section 214 of the Insolvency Act 1986 , a director can be personally liable for wrongful trading if the company continues trading after the director knew, or ought to have known, there was no reasonable prospect of avoiding insolvent liquidation. You avoid liability by taking advice early, documenting your decisions, and stopping trading if the company cannot meet its debts as they fall due. We advise directors from the first sign of financial difficulty, when the options are widest.

Insolvency and restructuring can be extremely stressful. Our corporate and commercial law solicitors will act quickly and strategically, advising on your legal duties and responsibilities and the best options available to you.

Last reviewed: August 2026

If your company cannot pay its debts as they fall due, or a director’s personal position is already at risk, the decisions taken in the next few weeks shape both the company’s survival and your own exposure. Our corporate and commercial law solicitors advise directors, creditors, and companies through restructuring, administration, CVAs, and liquidation. You can trust that we will ensure you remain compliant with the rules and regulations around the insolvency process, and advise and represent you if personal liability claims are brought or you, as a director, become subject to an investigation.

What does our insolvency and restructuring service cover?

Insolvency law moves fast once a company’s cash position deteriorates, and the right procedure depends on whether the goal is rescue, restructuring, or an orderly wind-down. We advise and act on:

Advising directors on their duties to creditors as a company approaches insolvency, and how to minimise personal risk.
Company voluntary arrangements under Part 1 of the Insolvency Act 1986, restructuring debt while the company continues to trade.
Administration, including appointing administrators to achieve a better outcome for creditors than immediate liquidation.
Creditors’ voluntary and compulsory liquidation, winding up a company and distributing its assets to creditors.
Defending directors against wrongful trading and misfeasance claims brought by a liquidator under the Insolvency Act 1986.
Advising secured and unsecured creditors on their position and options when a debtor company becomes insolvent.
Personal guarantee claims against directors, and negotiating with lenders where a guarantee has been called on.
Pre-pack administration sales, structuring a sale of the business and assets to a connected party where appropriate.
Cross-border insolvency issues, where a company or its creditors have assets or operations outside England and Wales.

Why choose Law Lane Solicitors for insolvency and restructuring?

The options for a struggling company narrow every week that formal advice is delayed, and directors who wait until a winding-up petition arrives have already lost the tools that could have saved the business. Our company and commercial team advises on cross-border insolvency and international disputes, and we bring that same first-hand knowledge of where personal liability actually bites to every restructuring and insolvency instruction.

We give you a straight assessment of the company’s position and your personal exposure, not a menu of options with no recommendation. We move quickly on company voluntary arrangements, administration, and liquidation, and we defend directors facing wrongful trading or misfeasance allegations with the same scrutiny we apply to due diligence on a deal. As a full-service firm, we also advise on the employment, property, and contractual issues that arise when a business restructures.

Get in touch today to discuss your position in complete confidence. Phone: 020 7870 4870 or email: info@lawlanesolicitors.co.uk

Law Lane Solicitors is proud to be accredited under The Law Society’s Immigration and Asylum Accreditation.

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Frequently Asked Questions – Insolvency and Restructuring

What is the difference between administration and liquidation?

Administration aims to rescue the company as a going concern, or achieve a better outcome for creditors than liquidation would, and it gives you breathing space through a statutory moratorium under Schedule B1 of the Insolvency Act 1986. Liquidation ends the company’s existence and distributes its remaining assets to creditors, either voluntarily or by court order. We advise directors and creditors on which route fits the company’s actual financial position.

What is wrongful trading and how do I avoid it?

Under section 214 of the Insolvency Act 1986, a director can be personally liable for wrongful trading if the company continues trading after the director knew, or ought to have known, there was no reasonable prospect of avoiding insolvent liquidation. You avoid liability by taking advice early, documenting your decisions, and stopping trading if the company cannot meet its debts as they fall due. We advise directors from the first sign of financial difficulty, when the options are widest.

Can I restructure my company's debts without going into formal insolvency?

A company voluntary arrangement under Part 1 of the Insolvency Act 1986 lets you agree a binding repayment plan with creditors while continuing to trade, without the company entering liquidation. Informal standstill agreements with key creditors can also buy time to restructure outside a formal insolvency process. We assess whether your company’s position supports an informal solution or requires a formal procedure.

What happens to my personal assets if my company becomes insolvent?

Limited liability generally protects your personal assets from the company’s debts, but that protection falls away if you have given a personal guarantee, or if you are found liable for wrongful trading or misfeasance. Directors’ loan accounts in overdraft at the point of insolvency can also become repayable to the company. We advise you on your personal exposure as soon as insolvency becomes a realistic prospect.

How much does an initial consultation cost?

We offer a fixed-fee initial consultation for company and commercial matters. At that meeting, we listen to your situation, identify the legal issues, and explain the steps and costs involved. Get in touch to arrange a time.