Insolvency, Administration & Your Legal Obligations
The legal side of business failure is confusing, stressful, and expensive to get wrong. These guides explain what's actually happening — in plain English, not legal jargon — so you can make informed decisions and understand your obligations as a director.
The legal stuff matters — but nobody explains it properly
When a company becomes insolvent, directors suddenly face a landscape of legal obligations they may never have encountered before. The terminology is opaque — administration, liquidation, CVA, wrongful trading, preferential payments — and the consequences of getting things wrong can be personal and severe.
The problem is that almost everything written about this topic is written for lawyers and insolvency practitioners, not for the founders who are actually going through it. The result is that directors make decisions based on panic, hearsay, or whatever their mate who "went through something similar" tells them down the pub.
These guides bridge that gap. They explain each process, obligation, and decision point in language that a non-lawyer can actually understand. They don't replace professional advice — you should absolutely speak to a qualified insolvency practitioner — but they'll help you walk into that conversation knowing what questions to ask and what the answers mean.
What you'll find here
What actually happens when a company goes into administration
A plain-English walkthrough of the administration process — what it means, what happens to you as a director, what happens to your staff, and what you can and can't control.
12 min readAdministration vs liquidation vs CVA: which one is right?
The different formal insolvency options explained without jargon — what each one does, who it's for, and what it means for you personally.
12 min readDirector duties during insolvency: what you need to know
Your legal obligations as a director when the company is insolvent or heading that way — wrongful trading, creditor duty, and what 'every step' actually means in practice.
12 min readPersonal guarantees: what happens when your company can't pay
If you've personally guaranteed a lease, a loan, or a credit facility — here's what your exposure actually looks like and what your options are.
12 min readThe paperwork nobody warns you about after a business fails
Companies House filings, tax returns for a dead company, HMRC obligations, insurance cancellations, data protection — the admin tail that drags on for months.
12 min readWhat happens to your staff when your company goes insolvent
Redundancy, notice periods, the Redundancy Payments Service, TUPE, and what employees are actually entitled to — written for the founder who feels terrible about it.
12 min readHow to choose an insolvency practitioner (and what to watch out for)
Not all IPs are equal. How to find a good one, what questions to ask, what fees to expect, and the red flags that suggest someone's more interested in their fee than your outcome.
12 min readNavigating insolvency is complex. Fortitude helps founders find the right professional support and make clear decisions under pressure.
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