Insolvency & Restructuring
Jonathan Lea Network advises companies, directors, creditors, suppliers, guarantors, shareholders, investors and insolvency practitioners on insolvency disputes and insolvency-related litigation in England and Wales. We help clients recover debts, respond to statutory demands and winding-up petitions, bring or defend claims against directors, challenge or defend pre-insolvency transactions, deal with retention of title and unpaid supplier disputes, and resolve personal guarantee or security enforcement issues. We act for both claimants and defendants, with a practical focus on protecting your position, managing risk and reaching a commercially sensible outcome.
Introduction
When a business or individual is facing insolvency, legal disputes often move quickly. Creditors may be trying to recover unpaid debts, directors may be concerned about personal liability, suppliers may want goods returned or paid for, and insolvency practitioners may need advice on claims that could increase recoveries for creditors.
Jonathan Lea Network advises clients on insolvency disputes, insolvency-related debt recovery and claims arising before, during and after administration, liquidation or bankruptcy. We act for both claimants and defendants, including companies, directors, shareholders, investors, creditors, suppliers, guarantors, insolvency practitioners, administrators and liquidators.
Our role is to help you understand the legal position, assess risk, preserve value and take commercially sensible action. In some cases, that means moving quickly to recover money or challenge transactions. In others, it means defending a claim, negotiating a settlement, protecting personal assets or stopping insolvency proceedings being misused as pressure in a wider commercial dispute.
If you are dealing with a statutory demand, winding-up petition, liquidator claim, director liability allegation, unpaid supplier dispute, personal guarantee demand or insolvency-related shareholder dispute, early legal advice can make a significant difference.
What does insolvency dispute legal advice cover?
Insolvency dispute advice covers the legal issues that arise when a company, partnership or individual cannot pay debts, may be insolvent, or has entered a formal insolvency process. It can involve debt recovery, claims by insolvency officeholders, disputes between directors and creditors, and arguments about transactions completed before insolvency.
A dispute may arise before any formal insolvency process starts. For example, a creditor may serve a statutory demand, a supplier may seek to enforce retention of title rights, or a director may need advice after receiving threats under a personal guarantee. Disputes can also arise after a company enters administration or liquidation, when an insolvency practitioner investigates past transactions, director conduct and asset movements.
Typical matters we advise on:
| Area of work | How we can help |
| Debt recovery, statutory demands and winding-up petitions | We advise creditors who are owed money and want to understand whether insolvency action is appropriate. We also advise companies and individuals who have received a statutory demand, winding-up petition or bankruptcy threat, especially where the debt is disputed or there is a wider commercial dispute. |
| Director misfeasance and breach of duty claims | We advise insolvency practitioners, creditors and companies considering claims against directors, as well as directors defending allegations. These claims may involve alleged misuse of company money, failure to act in creditors’ interests, poor record keeping or decisions taken when insolvency was likely. |
| Transactions at an undervalue | We advise on claims where assets may have been sold, transferred or otherwise dealt with for significantly less than they were worth before insolvency. We help clients assess whether the transaction can be challenged, whether there are available defences, and what evidence is needed. |
| Preference claims | We advise on claims where one creditor, connected party or guarantor is alleged to have been put in a better position than others shortly before insolvency. These disputes are often fact-sensitive and require careful analysis of timing, intention, relationship between the parties and the company’s financial position. |
| Wrongful trading and fraudulent trading allegations | We advise directors, insolvency practitioners and creditors on serious allegations that trading continued when insolvency could not reasonably be avoided, or that business was carried on dishonestly. We help clients understand the legal threshold, the evidence required and the personal exposure involved. |
| Transactions defrauding creditors, including section 423 Insolvency Act claims | We advise on claims involving alleged asset movements designed to put property beyond the reach of creditors or otherwise prejudice creditors’ interests. These claims can arise before or after formal insolvency and may involve companies, individuals, family members, trusts, property or connected businesses. |
| Retention of title, supply-chain and unpaid supplier disputes | We advise suppliers, customers and insolvency practitioners on whether goods can be recovered, paid for or retained when a business is in financial difficulty. These matters often overlap with commercial contract disputes, so we review the supply terms, retention of title wording, delivery records and insolvency position together. |
| Shareholder, investor and director disputes triggered by insolvency risk | We advise on disputes about control, funding, loans, dilution, asset transfers, board decisions and alleged misconduct where insolvency risk has changed the commercial dynamics. These matters often involve both insolvency law and wider company or shareholder dispute issues. |
| Personal guarantees and security enforcement disputes | We advise guarantors, lenders, creditors and business owners on demands made under personal guarantees, indemnities and security documents. We can review enforceability, scope, procedural issues, potential defences and settlement options. |
| Insolvency practitioner, administrator and liquidator advisory and litigation support | We support insolvency practitioners with investigations, recovery claims, pre-action correspondence, settlement strategy and litigation. We also advise directors, shareholders and other individuals who have been involved in a company’s insolvency process and later face claims or criticism from an officeholder, including where advice was originally given to or for the benefit of the company rather than to them personally |
Who needs an insolvency dispute solicitor?
You may need insolvency dispute advice if you are owed money, accused of misconduct, facing insolvency proceedings, or involved in a business where financial distress is creating legal risk. The right strategy depends on your role, your documents, the timing of the relevant events and whether formal insolvency has already started.
We commonly advise
- Creditors and unpaid suppliers. You may be trying to recover invoices, enforce a judgment, serve a statutory demand, issue a winding-up petition or protect goods supplied under retention of title terms. We can help you choose the most effective route without taking steps that could be challenged as disproportionate or procedurally defective.
- Companies facing creditor pressure. Your business may have received a statutory demand, winding-up threat, freezing of supply, retention of title notice or aggressive correspondence from a creditor. We can help you assess whether the debt is genuinely due, whether there are grounds to resist action, and how to manage communications while protecting the business.
- Directors, shareholders and business owners. You may be worried about personal exposure, including breach of duty claims, misfeasance allegations, wrongful trading, personal guarantees or claims that company assets were moved improperly. We can advise you on your position, help you preserve evidence and engage constructively with creditors or officeholders where appropriate.
- Insolvency practitioners and officeholders. Administrators and liquidators often need prompt, practical legal support when investigating transactions, assessing claims, recovering assets or responding to difficult directors, creditors or counterparties. We can assist with both advisory work and contentious recovery strategy.
- Investors, lenders and secured creditors. You may need advice on enforcing security, protecting priority, negotiating standstill arrangements, or responding to insolvency processes that affect your investment or lending position. We can work alongside your financial advisers to keep the legal and commercial strategy aligned.
When should you get legal advice about an insolvency dispute?
You should get advice as soon as there is a serious risk of insolvency proceedings, personal liability, asset recovery action or creditor enforcement. Insolvency disputes often involve short deadlines and procedural traps, and delay can reduce your options.
Common warning signs include receiving a statutory demand, being threatened with a winding-up petition, receiving a letter from a liquidator or administrator, being asked to repay money personally, facing a retention of title claim, or discovering that assets were transferred before insolvency.
Directors should also seek advice where the company is struggling to pay debts as they fall due, creditor pressure is increasing, key suppliers are withdrawing support, HMRC arrears are building, or the board is considering selling assets, repaying connected parties or continuing to trade despite serious cashflow concerns.
Early advice does not mean you are committing to litigation. In many cases, it allows you to avoid unnecessary litigation by assessing risk clearly, correcting procedural issues, negotiating from a stronger position and ensuring that key decisions are properly documented.
What are the main risks if an insolvency dispute is handled badly?
Insolvency disputes carry both legal and commercial risks. A creditor may lose recovery prospects if it delays, chooses the wrong procedure or fails to preserve evidence. A director may increase personal exposure if they ignore warning signs, continue trading without proper records, or treat one creditor more favourably than others without proper justification.
For companies, a winding-up petition can be particularly damaging. Even before a final hearing, the petition can create reputational harm, disrupt banking arrangements, alarm suppliers and make rescue or restructuring more difficult. Where the debt is genuinely disputed, urgent advice may be needed to stop a petition being presented or advertised.
For directors and shareholders, the risks can include personal contribution orders, disqualification issues, settlement pressure, personal guarantee enforcement, reputational damage and expensive litigation. Not every allegation is well-founded, but an unsupported or emotional response can make matters worse.
For creditors and officeholders, the main risks are proportionality, evidence and recoverability. A claim may look strong in principle but still be commercially unattractive if the defendant has limited assets, the evidence is incomplete, or litigation costs are likely to outweigh recovery.
How Jonathan Lea Network can help with insolvency disputes
Jonathan Lea Network provides practical legal advice that connects insolvency law with the wider commercial context. Insolvency disputes rarely sit in isolation. They often involve debt recovery, commercial contracts, directors’ duties, shareholder rights, security documents, personal guarantees, asset transfers and negotiation strategy.
We help clients understand the strengths and weaknesses of their position before committing to a course of action. That means identifying what must be done urgently, what evidence is needed, what arguments are likely to matter, and whether the dispute is best resolved through correspondence, negotiation, mediation, court proceedings or a formal insolvency process.
Our work may include:
- drafting or responding to statutory demands;
- advising on winding-up petitions and bankruptcy risks;
- challenging or defending insolvency-related claims;
- advising directors on duties when insolvency is likely;
- reviewing retention of title clauses and unpaid supplier rights;
- advising on personal guarantee demands and security enforcement;
- supporting insolvency practitioners with investigations and claims;
- negotiating settlements and repayment arrangements;
- preparing pre-action letters, evidence and court documents; and
- working with accountants, insolvency practitioners and other advisers where a joined-up strategy is needed.
We are commercially focused and proportionate. Some matters require urgent court action. Others are better handled by robust correspondence, careful evidence gathering and a negotiated resolution. We will explain the options clearly so you can make informed decisions.
How does the process work?
The right process depends on whether you are bringing a claim, defending a claim, facing creditor action or acting as an insolvency practitioner. However, most matters follow a similar structure.
Initial assessment
We start by understanding who you are in the dispute, what has happened, what documents exist and what deadline or threat is driving the matter. We will usually ask for key correspondence, contracts, demands, board minutes, finance documents, security documents, invoices, statements of account and any insolvency practitioner letters.
Urgent risk review
If there is a statutory demand, winding-up petition, pending hearing, asset dissipation concern, director liability threat or guarantee demand, we identify the immediate risks first. This may involve urgent correspondence, protective applications, evidence preservation or advice on what not to do.
Legal and commercial strategy
We then assess the legal merits, likely defences, evidential issues, recovery prospects and cost-benefit position. The aim is not just to identify whether a claim is arguable, but whether pursuing or defending it makes commercial sense.
Pre-action correspondence and negotiation
Many insolvency disputes are resolved before trial. We can prepare or respond to formal letters, make without prejudice proposals, negotiate repayment terms or settlement agreements, and help you avoid admissions or procedural missteps.
Court or insolvency proceedings where needed
Where litigation or insolvency proceedings are necessary, we can help prepare the claim, application, evidence and hearing strategy. We will explain likely costs, timing and risk at each stage so that the process remains controlled and commercially justified.
How much does insolvency dispute advice cost?
Costs depend on urgency, complexity, document volume, the number of parties involved and whether court proceedings are required. A focused initial review of a statutory demand, guarantee demand or liquidator letter will usually cost significantly less than a multi-party claim involving asset transfers, director conduct and contested insolvency proceedings.
We will respond to most enquiries with both an indicative scope of work and fee estimate, as well as the offer of a complimentary 20-minute discovery video call to discuss your issues and how we can help, before sending a more considered formal fee estimate via email. This helps you decide whether to start with a discrete review, a letter of advice, a negotiated response, or a more comprehensive litigation strategy.
In some cases, the value of early legal advice lies in avoiding a much more expensive dispute later. For example, a director may need advice before responding to a liquidator, a creditor may need to know whether a winding-up petition is appropriate, or a supplier may need urgent advice on whether goods can lawfully be recovered.
We will not encourage unnecessary litigation. Our aim is to help you protect your position, make informed commercial decisions and pursue the most proportionate route available.
What should you do now if you are facing an insolvency-related dispute?
If you have received a statutory demand, winding-up threat, liquidator letter, personal guarantee demand, retention of title notice or allegation of director misconduct, do not ignore it. The safest first step is to take advice before responding substantively, making payment, transferring assets or committing to a settlement.
You should gather the key documents, make a short chronology of events and avoid deleting messages, emails, accounting records or board materials. If you are a director, avoid taking decisions that could prefer one creditor, connected party or guarantor without proper advice.
For urgent matters, contact Jonathan Lea Network as soon as possible. We can review the immediate risk, explain your options and help you decide the most commercial next step.
We will respond to most enquiries with both an indicative scope of work and fee estimate, as well as the offer of a complimentary 20-minute discovery video call to discuss your issues and how we can help, before sending a more considered formal fee estimate via email.
In some limited cases, if you would just like initial advice and guidance on a call, we may instead offer a fixed fee appointment (commonly charged between £280 to £500 + VAT) whereby we will review the information you provide, hold a video call consultation and then follow up with an advisory email (as well as a fee estimate for any further work identified).
Please email wewillhelp@jonathanlea.net or call us on 01444 708640 as a first step. We first need an overview of the background and your issues, together with any significant documents, to provide an indicative scope of work and fee estimate.
Our restructuring and insolvency related services include
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Administrations, including pre-pack and phoenix deals;
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Administrative receiverships;
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Bankruptcy;
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Company voluntary arrangements;
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Debt and equity rescheduling and refinancing;
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Debt for equity conversions;
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Debt recovery options;
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Directors duties and disqualification proceedings;
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Dissolution of companies;
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Distressed sales and purchases of assets;
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Liquidations;
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Individual voluntary arrangements;
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Investigations;
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Non-performing loan advice;
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Recovery of foreign assets;
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Security enhancement and prioritisation;
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Schemes of arrangement;
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Retention of title claims; and
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Tracing, seizing and recovering assets.
Speak to Jonathan Lea Network about an insolvency dispute
Insolvency disputes can move quickly, and the consequences can be serious for cashflow, assets, directors, creditors and business continuity. Whether you need to recover money, defend a claim, respond to a statutory demand, advise an officeholder, challenge a transaction or deal with a personal guarantee, early advice can help you avoid mistakes and improve your negotiating position.
Jonathan Lea Network provides clear, commercially focused insolvency dispute advice for clients across England and Wales. Contact us to discuss your situation, understand your options and decide the most effective next step.
Contact Us
We will respond to most enquiries with both an indicative scope of work and fee estimate, as well as the offer of a complimentary 20-minute discovery video call to discuss your issues and how we can help, before sending a more considered formal fee estimate via email.
In some limited cases, if you would just like initial advice and guidance on a call, we may instead offer a fixed fee appointment (commonly charged between £280 to £500 + VAT) whereby we will review the information you provide, hold a video call consultation and then follow up with an advisory email (as well as a fee estimate for any further work identified).
Please email wewillhelp@jonathanlea.net or call us on 01444 708640 as a first step. We first need an overview of the background and your issues, together with any significant documents, to provide an indicative scope of work and fee estimate.
FAQ on Insolvency Disputes
Yes, you may be able to defend or challenge a statutory demand if the debt is genuinely disputed on substantial grounds, there is a significant cross-claim, or there is another good reason why insolvency proceedings should not continue. The correct process depends on whether the demand is against an individual or a company, so urgent advice is important. Yes, in some circumstances a liquidator can bring claims against directors personally, including claims for misfeasance, breach of duty, wrongful trading or transactions that harmed creditors. The fact that a company failed does not automatically mean directors are liable, and the outcome will depend on the evidence, timing and decisions taken. A transaction at an undervalue usually involves assets being transferred for no value or for significantly less than they were worth. A preference usually involves putting one creditor or connected party in a better position than they would otherwise have been in shortly before insolvency. Suppliers may be able to recover goods if there is an effective retention of title clause and the goods can still be identified, but the position is often fact-specific. The contract wording, delivery records, whether goods have been mixed or sold, and the insolvency process all need to be considered. Yes, a personal guarantee can allow a creditor to pursue you personally if the company defaults. However, guarantees and security documents should be reviewed carefully because issues such as scope, execution, variation of the underlying debt, undue influence, misrepresentation or enforcement procedure may affect liability or negotiating leverage.
Our Insolvency & Restructuring Team
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