Jurisdiction(s):
United Kingdom

Insolvency claims: funding and litigating versus selling or assigning—pros, cons and key considerations

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

What options are available when deciding how to fund litigation?

Litigation funding, in its broadest sense, means reviewing every way to finance the different costs of pursuing a claim through trial, enforcement and ultimate recovery as appropriate. These routes may include one or more of the following practical mechanisms:

the litigating IP pays some or all costs on a standard private client basis, i.e. meeting costs from money available in the insolvent estate (if any) as they fall due and are incurred
solicitors are instructed under a conditional fee agreement (CFA) or damages-based agreement (DBA), or via a split approach where part of their fees accrue on that basis and part are paid as they arise by agreement
counsel is engaged on a CFA or DBA, or on a mixed model with some of their fees accruing on that basis and some paid as they are incurred
after-the-event (ATE) insurance is obtained to meet any adverse costs order if the case is lost, on terms that the premium is wholly or partly deferred
security for costs is provided by means of a specifically tailored ATE insurance policy where appropriate
court fees and other disbursements

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Mark Sands

Opus Business Advisory Group

Mark has nearly 40 years of experience in the insolvency profession, with more than 15 years as an appointment taking insolvency practitioner. Mark’s focus for the last 20 years has been on personal and contentious insolvency cases, with several years spent at a litigation funder reviewing insolvency claims for funding. Mark worked on several reported personal insolvency cases, which still influence insolvency practice today. Mark’s last few roles have had a national footprint as a result of which Mark is as well known in the regional centres as in London. At Opus Mark is leading and developing their personal insolvency offering....

Web page updated on 27/05/2026

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