Insolvency Claims Solicitors in Birmingham

Insolvency claims require precise documentation and considered action. Our solicitors can advise on the mechanism and appropriate procedure, whether you are defending a claim or bringing one.

Early instruction matters in every insolvency claim we handle. We act for both insolvency practitioners and directors, so we see both sides of the process.

  • Acting for IPs and directors
  • Legal 500 recognised firm
  • Solicitor-Advocate for court hearings
  • Birmingham city centre office
  • Multilingual advice in 10+ languages
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What This Involves

Insolvency claims arise from the conduct of directors, the disposal of assets, the treatment of creditors, and company finances before and during insolvency.

Misfeasance and breach of fiduciary duty

A liquidator can claim misfeasance under section 212 of the Insolvency Act 1986 for breach of duty by a director. Claimants must show the company suffered a loss, and our team can handle evidence gathering to support or defend corporate insolvency and misfeasance claims.

Wrongful trading and director liability

Section 214 of the Insolvency Act 1986 lets a liquidator claim against you if you knew liquidation was unavoidable and failed to limit losses. The defence turns on what a diligent director would do. We advise on both claims and defence in cases where wrongful and fraudulent trading are alleged.

Transactions at an undervalue claims

Section 238 of the Insolvency Act 1986 lets a liquidator set aside a transaction below market value within two years of insolvency, if the company was insolvent at the time or because of it. We advise on bringing or defending such claims.

Preferences to creditors before insolvency

Section 239 of the Insolvency Act 1986 lets a liquidator challenge preferential payments that favoured one creditor shortly before insolvency. The period is six months for third parties, two years if connected. We advise on the threshold and defences.

Winding-up petitions and validation orders

Winding-up proceedings trigger section 127 of the Insolvency Act 1986, voiding disposals unless the court validates them. Once advertised in the London Gazette, your bank accounts are at risk. We can advise on injunctions and validation orders.

Director disqualification proceedings

The Insolvency Service investigates conduct after insolvency and may seek director disqualification under the Company Directors Disqualification Act 1986, lasting up to 15 years. An early undertaking can avoid a hearing. We advise on your options.

Acting for insolvency practitioners

Insolvency practitioners must investigate conduct and pursue recoveries where justified. We support any claim above: drafting proceedings, advising on evidence, and acting as advocate for higher-court work.

Your Confidence, Our Commitment

Our Approach

Initial Review

We review the claim or allegation against you, assess the strength of the evidence, and identify the defences available, so you understand your position before deciding how to proceed.

Negotiation

Many insolvency claims settle through negotiation before a court hearing, particularly where the evidence favours one side. We negotiate on your behalf to reduce costs and uncertainty for everyone involved.

Urgent Court Action

Some claims need urgent action. Section 127 of the Insolvency Act 1986 voids company payments made after a winding-up petition, putting your bank accounts at risk. We apply for a validation order to keep you trading safely.

Hearing and Resolution

Where a claim cannot be settled, we represent you at the hearing, including in the High Court where higher-court advocacy is needed, and pursue the outcome that best protects your position.

Insolvency Case Studies

Birmingham Family Courts from exterior on a sunny day

Enforcing Unpaid Costs

A winding-up petition was pursued to enforce an unpaid costs order. The court ordered the defendant company to be wound up for non-payment.

The case required strict adherence to petition requirements and service rules. Enforcement choices depend on solvency, timing and wider commercial risk.

Incorrect Tax Bill - Working Out HMRC's Error

Challenging HMRC Action

An application challenged the basis for insolvency proceedings and sought dismissal of HMRC’s winding-up petition. The court dismissed the petition.

The result turned on the documentation and the applicable insolvency tests. Similar matters are fact-sensitive, and urgent decisions may be needed when a petition is threatened.

one snow hill commercial building in Birmingham

An International Insolvency Dispute

A high-net-worth European family required advice on a substantial cross-border insolvency dispute involving multiple jurisdictions. The matter progressed with opponents represented by tier-one City litigation teams. Strategy centred on risk analysis, evidence control and settlement leverage, while preserving confidentiality where possible. Each step was taken with procedural requirements in mind.

Client Feedback

Prompt, responsive and genuine

Our initial consultation with Qarrar left us with utmost confidence in his knowledge, skills and experience. A clear communicator, prompt, responsive and genuine. It's been a pleasure to connect with Qarrar, experience his professionalism and to now regard him as a trusted advisor.

Excellent

He was not able to help us directly, but was able to recommend us to right team. Excellent.

Meet the Team

Qarrar Somji

Qarrar Somji

Director, Solicitor-Advocate

Qarrar leads complex insolvency disputes, combining higher-court advocacy with strategic, commercial advice for practitioners, office holders, creditors and businesses alike.

Felicity Wood

Felicity Wood

Senior Litigation Executive

Felicity supports insolvency and company disputes with clear, practical litigation advice, bringing commercial, property and contentious probate experience to clients.

Aliya Abid

Aliya Abid

Solicitor

Aliya handles insolvency matters, including winding-up petitions, offering practical support informed by civil, property, contract and advocacy experience for clients.

Our Birmingham Office

Our Birmingham office is in Digbeth, less than a mile from the Bullring and New Street Station, with city-centre access by foot, car and bus. 

Witan Solicitors (Birmingham)
Bradford Court
123–131 Bradford Street
Digbeth, Birmingham
B12 0NS

Get Advice on Your Insolvency Claim

Insolvency claims carry strict statutory deadlines, and some carry short limitation periods.

The earlier you take advice, the more options remain open, whether you are defending a claim or considering bringing one.

0300 303 2071

Mon - Fri 8:30 - 5:30

Related Insights

Witan Solicitors Limited is authorised and regulated by the Solicitors Regulation Authority (SRA 605789). You can view the firm record on the SRA register, and Witan publishes its complaints procedure online.

This page was last reviewed by Qarrar Somji, Director & Solicitor-Advocate, Insolvency Team, May 2026. Our Insolvency content is reviewed every six months to ensure it reflects current legislation, case law and market practice.

FAQ

Can a director be personally liable for wrongful trading?

Yes. Under section 214 of the Insolvency Act 1986, a director can be ordered to contribute personally to company assets if they knew, or should have known, insolvent liquidation was unavoidable and failed to take every step to limit creditor losses.

What is the difference between wrongful and fraudulent trading?

Wrongful trading, under section 214, does not require dishonesty, only that you continued trading when insolvency was unavoidable. Fraudulent trading, under section 213, requires proof of actual dishonesty and intent to defraud creditors, and carries uncapped liability.

How long does a liquidator have to bring an insolvency claim?

Time limits vary by claim. Preferences and transactions at undervalue generally look at payments or transactions in the two years before insolvency. Other claims, such as misfeasance, are subject to the general six-year limitation period, so acting early matters.

Can a transaction at undervalue be reversed after insolvency?

Yes. Under section 238 of the Insolvency Act 1986, a liquidator or administrator can apply to set aside a transaction made below market value within two years of insolvency. The court can restore the position as if the transaction had not happened.