Jurisdiction(s):
United Kingdom

Related legal acts

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...

Insolvency of limited partnerships (including PFLPs): principles, partner liability, winding up, Companies House requirements, dissolution and bankruptcy issues, entity classification, and forthcoming reforms

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

Applicable legislation

Limited partnerships are established under the Limited Partnerships Act 1907 (LPA 1907). The Partnership Act 1890 (PA 1890), together with equitable principles and the common law relating to partnerships, also governs limited partnerships, so far as consistent with the LPA 1907...

A limited partnership, like a general partnership, does not possess separate legal personality (Re Barnard, Martins Bank v Trustee)...

insolvency law generally treats limited partnerships in the same way as insolvent general partnerships. The Insolvent Partnerships Order 1994 (IPO 1994), SI 1994/2421, aligns the insolvency treatment of general and limited partnerships. Nonetheless, the IPO 1994, SI 1994/2421 contains certain adaptations that are specific to limited partnerships. These reflect that, for insolvency purposes, a general partner is dealt with under the same rules as a general partner in an ordinary partnership, whereas tailored provisions apply to the limited partner due to the protection afforded by their limited liability...

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Natasha Dzameh

St John's Chambers

Natasha is a specialist commercial and chancery barrister who is consistently ranked as a leading junior in Chambers UK and Legal 500. She has been described as someone who has “a good way with clients” as well as being “an assertive and tenacious advocate”, “very responsive, extremely thorough, pragmatic and easy to work with as part of the team”, “approachable” and “extremely intelligent, with an eye for practical and innovative solutions”. Natasha is often instructed as sole counsel in high value, multifaceted litigation. She has experience of acting as junior to senior counsel on particularly complex matters and working in teams of counsel on large scale, high value, document-heavy government disputes. Her clients range from individuals to major financial institutions and international companies including high street brands. Natasha’s main areas of expertise are: Commercial disputes – agricultural, banking and financial (including...

Web page updated on 21/05/2026

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