Jurisdiction(s):
United Kingdom

Key definition

Insolvency definition

What does Insolvency mean? In practice, insolvency describes a financial state where a debtor cannot meet liabilities when due, triggering remedies such as administration, liquidation or bankruptcy and informing directors’ duties and avoidance claims. For companies in England & Wales, Scotland and Northern Ireland, the Insolvency Act 1986, s 123 sets two alternative tests: - Cash‑flow insolvency: an inability to pay debts as they fall due. The inquiry is practical and forward‑looking, not confined to today’s bills (Re Patrick & Lyon Ltd [1933] Ch 786; BNY Corporate Trustee Services Ltd v Eurosail [2013] UKSC 28). - Balance‑sheet insolvency: liabilities (including contingent and prospective liabilities) exceed assets on...

UK Supreme Court appeals under the 2024 Rules: permission, starting and preparation, hearings and costs (from 2 December 2024)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

The Supreme Court stands as the highest court of record in the UK. It:

hears appeals raising arguable points of law of general public importance across the United Kingdom in civil cases, and for England, Wales and Northern Ireland in criminal cases
decides devolution and compatibility matters, namely whether devolved executive and legislative authorities have acted, or propose to act, outside their powers, or have failed to meet a duty placed upon them
considers references from lower courts or the law officers on issues tied to retained European Union law

For further information, see Practice Note: Supreme Court—role, structure and powers—on or after 2 December 2024.

Supreme Court rules and Practice Directions

The Supreme Court Rules 2024 (SCR) took effect on 2 December 2024. They govern civil and criminal appeals to the Supreme Court, as well as appeals and references within the Court’s devolution and assimilated law jurisdiction. The Court has also issued new practice directions (SCR PD) applying to appeals started on or after 2 December 2024. Read together, the SCR and SCR PD provide the framework on which the Supreme Court operates...

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Web page updated on 22/05/2026

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