Insolvency for dispute resolution lawyers

The content in this subtopic is intended to assist a dispute resolution lawyer navigate the issues and wider strategic considerations which might arise in the context of disputes involving financially distressed and/or insolvent parties.

Impact of insolvency on litigation

It is important to observe at the outset that there is no general prohibition on issuing or pursuing any claims (whether original claims, additional claims or counterclaims) against ‘insolvent’ parties. Insolvency is a question of fact and individuals and companies may shift from solvency to insolvency at various times without any legal consequences as regards parties who may wish to bring claims against them. However, when a company or an individual enters into a formal insolvency process or debt management regime, restrictions may be imposed on the ability of other parties to bring, or continue with, claims against that company or individual.

For general guidance concerning the impact of insolvency processes on litigation, see: Claims against insolvent companies and individuals—overview, as well as Practice Notes:

•
What effect does an insolvency process have on ongoing litigation and arbitration proceedings?
•
Comparison

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Dispute Resolution News

Glencore ruling affirms disclosure trumps prosecution fears

Law360, London: A recent High Court decision that forced Glencore to hand over documents obtained from a Dutch investigation provides further evidence of the difficulties companies face when they try to resist disclosure in civil proceedings by pointing to the risk of prosecution overseas.

190th Practice Direction update—online civil claims—in force 16 September 2025

The 190th Practice Direction update comes into force at 11am on 16 September 2025. This update introduces changes to amend CPR PD 51R (the Online Civil Money Claims Pilot) and CPR PD 51ZB (the Damages Claims Pilot). The changes to CPR PD 51R expand the case progression and general applications features to all County Courts. The update also makes minor tidying up amendments to CPR PD 51R and CPR PD 51ZB.

Court’s power to grant anonymity orders in personal injury litigation to ensure the proper administration of justice (PMC v Cwm Taf Mogannwg UHB)

PI & Clinical Negligence analysis: The Court of Appeal has clarified the law on granting anonymity orders as part of the court’s inherent jurisdiction, overturning the first instance decision which had cast doubt on the guidance provided by the Court of Appeal in X v Dartford and Gravesham NHS Trust, in which it established the general rule for granting anonymity orders made post-settlement in advance of approval hearings for protected parties in personal injury cases. At first instance, Mr Justice Nicklin held that the court had very limited powers to make an anonymity order in personal injury litigation and that it was not appropriate to make such an order in the case of PMC, where the claimant’s case had been much publicised in the press. Written by Robert Weir KC, barrister at Devereux Chambers.

HMCTS publishes guidance for legal professionals on defending, admitting and managing money claims in the OCMC under CPR PD 51R

HM Courts & Tribunals Service (HMCTS) has published comprehensive guidance for legal professionals on using the MyHMCTS platform to manage money claims up to £25,000 using the Online Civil Money Claims Pilot (OCMC) under CPR PD 51R. Released on 15 September 2025, the guidance outlines procedures for defending, admitting, and managing online money claims via the digital service. It details technical processes, including the submission of extension of time applications, document uploads, trial bundle management and mediation arrangements.

View Dispute Resolution by content type :

News