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United Kingdom and Ireland
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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...

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Archived: Comparative matrix of restructuring and insolvency regimes worldwide—rescue tools, moratoria, cram-downs, DIP finance, ipso facto clauses, debt-for-equity swaps, and COMI considerations for forum selection

Practice notes
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ARCHIVED : This Practice Note has been archived and is no longer maintained. Rationale

In any cross-border matter that triggers a formal insolvency process, practitioners examine the potential jurisdictions for commencing proceedings, weighing the pros and cons of each option. The doctrine of centre of main interests (COMI) within Regulation (EU) 2015/848 (OJ L141 5.6.2015 p 19), the recast regulation on insolvency [EU Recast Regulation on Insolvency], together with the UNCITRAL Model Law on Cross-Border Insolvency (see UNCITRAL Model Laws—overview), means that, where time allows, advisers may engage in forum shopping to shift a company’s COMI (wherever it is incorporated) to a jurisdiction offering a more advantageous restructuring or insolvency framework (see Practice Note: Forum shopping and practical ways to move COMI). European states may accordingly adapt their legislation, in particular to enable stays, cram down and debtor in possession (DIP) financing, having regard to the EU Directive on preventive restructuring frameworks, second chance and measures designed to improve the efficiency of restructuring, insolvency and discharge procedures (see Practice Notes: Harmonising insolvencies and restructurings across Europe and INSOL Europe/Lexis+® UK Joint Project on EU Harmonisation Directive 2019/1023: consolidated table). All of this shapes practitioners’ strategic choices.

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Web page updated on 21/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...

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