Liquidation is the process of winding up a company's affairs and distributing its assets to creditors and shareholders. Administration is a process where an administrator is appointed to manage the company's affairs and try to rescue it as a going concern. The main difference is that liquidation is the end of the road for a company, while administration is an attempt to save it.

A company is considered insolvent if it cannot pay its debts as they fall due or if its liabilities exceed its assets. This can be determined by conducting a cash flow test or balance sheet test. If a company is insolvent, it must take immediate action to avoid further financial difficulties and potential legal action from creditors. Directors have a duty to act in the best interests of the company and its creditors in such circumstances.

If you are a sole trader or a partnership, you can continue to trade while in insolvency proceedings. However, if you are a limited company, you can only continue to trade if the administrator or liquidator allows it. They will consider whether it is in the best interest of the creditors and the company to continue trading. If they allow it, you must follow their instructions and keep accurate records of all transactions.

During insolvency proceedings, your assets will be used to pay off your debts to creditors. The assets will be sold off and the proceeds will be distributed among the creditors according to their priority. Some assets may be exempt from being sold, such as essential household items and tools of trade. The insolvency practitioner will manage the process and ensure that it is carried out in accordance with UK law.

If you are a director of a limited liability company, you are generally not personally liable for the company's debts. However, if you have acted negligently or fraudulently, or have given personal guarantees for the company's debts, you may be held personally liable. Additionally, if the company becomes insolvent and you continue to trade while knowing that the company cannot pay its debts, you may be held personally liable for any losses incurred by creditors.

The length of insolvency proceedings can vary depending on the complexity of the case, but typically they can last anywhere from several months to a few years.

An insolvency practitioner is a licenced professional who is appointed to manage the affairs of a company or individual who is insolvent or facing financial difficulties. Their role is to assess the financial situation, advise on the best course of action, and manage the process of restructuring or liquidating the company's assets. They are also responsible for ensuring that creditors are treated fairly and that the interests of all parties involved are protected.

Yes, you can challenge a decision made by an insolvency practitioner by making an application to court. The court will review the decision and determine whether it was made in accordance with the law and the insolvency practitioner's duties. This is governed by UK law, specifically the Insolvency Act 1986.

If an individual or company is declared insolvent their assets may be sold to pay off creditors. They may also be subject to restrictions on their ability to obtain credit or act as a director of a company. In some cases, bankruptcy or liquidation proceedings may be initiated. Insolvency can have serious financial and personal consequences, including damage to credit ratings and reputations.

The insolvency process is a legal procedure that deals with individuals or companies who are unable to pay their debts. It involves assessing the financial situation of the debtor, appointing an insolvency practitioner to manage the process, and distributing assets to creditors. The aim is to either restructure the debt or liquidate assets to pay off creditors.