Blog

Company Liquidations at a 16‑Year High: Why Early Insolvency Advice Matters

Blog

Gordon Chan,

Associate

Published: 30 July 2026

Last Updated: 30 July 2026

For Business Directors & Owners: Act Early to Reduce Insolvency Risks

Stabilise cash flow and speak to key creditors early—regulators, lenders, banks, Inland Revenue, and debt collectors are enforcing harder. Delays narrow your financial options for making repayments.
Meet your duties when insolvency risks appear, especially with failure rates at their highest in 16 years. Document decisions and stay ahead of risk.
Explore restructuring and insolvency options (creditor compromises, standstills, voluntary administration) before creditors take control of the process.

For Creditors: Protect Yourself and Recover Owed Money Faster

Move quickly to recover debt—repayments tend to diminish the longer you wait, especially in sectors with high liquidation rates.
Use targeted enforcement tools such as statutory demands, PPSR checks, caveats on property, and charging or freezing orders to secure your position.
Monitor counterparties for early warning signs, such as non‑payment or asset movements.

Contract Counterparties & Landlords: Strengthen Your Position

Build insolvency protections into contracts, such as step‑in rights, milestone payments, and performance security—particularly relevant given failures in construction and hospitality.
Follow a clear escalation process when defaults occur, aligned with today’s faster enforcement landscape.

Early Warning Signs of an Unstable Financial Situation

Repeated late or partial repayments
Requests to renegotiate repayment terms
IRD arrears or non‑compliance
Silent construction sites, suspended work, or supplier withdrawals—common in high‑risk sectors

How Norling Law Helps You Navigate This Environment

Norling Law’s insolvency experts advise directors, owners, and lenders on:

Rapid insolvency risk assessment and clear next‑step options
For directors and owners, negotiations with creditors before unmanageable debt piles up (including IRD tax debt), and practical restructuring and insolvency options
For creditors, swift legal action against debtors: statutory demands, winding‑up applications, security realisation, and caveats
Restructuring and recovery strategies tailored to today’s elevated insolvency landscape

With companies under liquidation at their highest in more than a decade, acting early and strategically gives you the best chance of protecting assets.

Contact Norling Law for decisive, practical guidance tailored to your situation. Book your free 30-minute consultation today.