UK Company Insolvency

UK company insolvency occurs when a business cannot pay its debts as they fall due. This situation can lead to various outcomes, such as administration, liquidation, or a company voluntary arrangement (CVA). In administration, an administrator takes over to try to rescue or sell the business. Liquidation involves closing the company and selling its assets to pay creditors. A CVA is an agreement with creditors to repay debts over time. Insolvency laws aim to protect creditors while offering solutions for struggling companies, ensuring a fair approach to debt resolution.