Active insolvency proceedings: what the check means
What the active insolvency check looks for, from liquidation and administration to CVAs and moratoriums, how solvent wind-downs are treated, and what to do.
- Severity
- Critical
- Category
- Legal
- Plan
- Free and above
- Test code
- LEG-001
- Source
- Companies House insolvency records, The Gazette (London, Edinburgh and Belfast) · check it yourself
What this test checks
Checks the company's insolvency record for any case that is still open: liquidation, administration, a company voluntary arrangement, receivership or a moratorium. Each of these restricts how the company can trade and how its creditors will be paid.
The test reads the type of case, not just the register status. A members' voluntary liquidation, which closes a solvent company and pays its creditors in full, is reported as a solvent wind-down warning rather than as an active insolvency.
What a fail looks like
At least one insolvent case is open. What that means depends on the process: a company in a CVA is still trading under an agreement with its creditors, while one in creditors' voluntary or compulsory liquidation is being wound up.
Harmless explanations
- An open members' voluntary liquidation is a solvent closure, not an insolvency, and is reported as a warning rather than a fail.
- A CVA that is being kept to can be a sign the company is managing its debts rather than failing.
What to do
- Identify the process and the office-holder from the insolvency record or the Gazette.
- If you are owed money, submit a claim to the office-holder.
- If you depend on the company, plan for the relationship to end or change, even where trading continues.
Background: What insolvency means for a supplier.
Related tests
- LEG-021Insolvency Process Classification
- LEG-024Administration Appointment
- LEG-018Moratorium Active
- FIN-001Company Status Check
- LEG-002Insolvency History
Part of the test catalogue. Every check Senserity runs, with its severity and the plan it is available on.
Last reviewed .