When a business starts struggling, many directors look for the fastest, least stressful way to deal with insolvency. Online services can make some steps easier, especially when you’re gathering information, checking viability or speaking confidentially with a specialist. But business insolvency is a regulated area. It’s not something you can legally complete from start to finish through an online form.
Any formal process, whether rescue or closure, must be handled by a licensed insolvency practitioner. That requirement is strict. The law gives insolvency practitioners statutory powers because creditor interests need to be protected and directors need safeguards against personal risk. No website can replace that.
What you can do online is start the conversation, share documents securely and get clarity on your position quickly. What you cannot do is run a liquidation, CVA or administration without regulated oversight.
Which parts of insolvency can be handled online?
You can handle the initial stages of exploring insolvency online. Many directors prefer:
- Online research to assess whether their company is insolvent and what to do next
- Instant callback options that give quick access to a qualified insolvency practitioner
- Digital document sharing to speed up reviews of accounts, creditor balances, contracts and tax arrears
These tools make it easier to get fast, confidential guidance when you’re under pressure. They also help directors understand whether they’re facing cash-flow insolvency or balance-sheet insolvency.
But once you reach the point where your company needs a formal insolvency process, the law steps in. Every formal route requires a licensed insolvency practitioner.
Why insolvency cannot be fully online
Insolvency is one of the most tightly regulated areas of UK business law. Liquidation regulations such as The Insolvency Act 1986 and Insolvency Rules 2016 set out who can run a process, what steps must happen and how creditors must be treated.
Procedures like liquidation, administration and CVAs can only be led by a licensed insolvency practitioner. This protects directors because:
- It protects you from personal liability. For this, assessments like a director conduct report need to be carried out correctly.
- Creditors must be treated fairly. Mistakes can expose you to personal claims.
- Certain decisions require statutory powers. Only an insolvency practitioner can carry out asset liquidation, handle creditor voting and the closure of the business.
These are not tasks that can legally be completed by a software platform, automated system or unregulated adviser.
Where online insolvency services fall short
Some websites imply that you can “liquidate online” or “start insolvency instantly”. While you can initiate an enquiry online, the actual legal process cannot be completed without a licensed insolvency practitioner. Directors should be cautious with:
Unregulated services
Some online services are completely unlicensed. They might offer anything from alternative advice through to buying your business with its debts. This adds huge personal risk, because incorrect guidance and incomplete procedures can worsen your situation, increase creditor losses and heighten your exposure to legal action.
Automated questionnaires without expert review
A solvency test is not a tick-box exercise. Directors must understand liabilities including HMRC arrears, contingent debts, leases and an overdrawn director’s loan account. An insolvency practitioner reviews all of this in detail, because mistakes can lead to accusations of wrongful trading or misfeasance.
Low-cost liquidation “packages” that hide risks
Liquidation costs can vary depending on your company’s assets and complexity. Quotes that look unusually cheap may mean work is being outsourced, corners will be cut or risks will go unaddressed.
A reputable insolvency practitioner will always explain fees clearly, provide regulated terms of engagement and outline exactly how creditors and directors are protected throughout.
What you can do online safely
While the legal process itself cannot be completed exclusively online, technology now makes many steps simpler and faster. You can typically:
1. Book a confidential consultation
Most firms offer online meetings so directors can speak openly without travel or delay. Early advice is crucial, especially if there’s HMRC pressure, missed PAYE/VAT or creditor threats. These issues are often the first indicators of insolvency.
2. Share documents securely
You can upload bank statements, management accounts, creditor schedules, tax information and correspondence to a secure portal. This allows an insolvency practitioner to assess your position quickly and accurately.
3. Receive digital reports, proposals and updates
Almost everything can be handled electronically once the formal process begins. This includes statements of affairs, voting materials for creditors and progress reports. The key distinction is that technology makes insolvency easier. It does not replace the regulated professional who must oversee it.
Why choosing a reputable insolvency practitioner matters
Insolvency is personal. Pressure from HMRC, lenders or suppliers is draining and misunderstandings can escalate matters quickly. A reputable insolvency practitioner gives you:
- Clear, direct guidance that cuts through jargon and stops uncertainty
- Protection from personal risk by ensuring decisions follow your duties as a director
- A structured process designed to handle creditors properly
- Speed and efficiency so issues don’t escalate into winding-up petitions or court action
If you attempt to close an insolvent company without a formal process or advice, major risks arise:
- Strike off can be blocked if creditors are owed money, especially HMRC
- The company can be restored to pursue unpaid debts
- The Insolvency Service can investigate conduct even after dissolution
- Directors could face wrongful trading or be held personally liable for company debts if issues aren’t handled correctly
Insolvency needs more than form-filling. It needs regulated oversight to ensure everything stands up to scrutiny.
Key takeaways: Can you manage business insolvency online?
- Parts of the process can be started online, such as sharing documents, booking consultations and assessing cash flow
- Insolvency is a regulated area and formal procedures must be led by a licensed insolvency practitioner
- Online-only services cannot run liquidation, administration or CVAs because these require statutory powers
- Choosing a reputable, regulated insolvency practitioner protects you from personal risk and ensures creditor treatment is compliant
- Technology can speed up the process, but only an IP can guide you through decisions that affect your duties as a director
Get advice on managing business insolvency online
If your business is under pressure, you can start the process online. But you cannot complete a formal insolvency without a licensed insolvency practitioner. Speaking to a licensed insolvency practitioner early protects you, preserves options and gives you clarity before matters escalate.
Our licensed insolvency practitioners can review your position quickly using secure online tools, explain the options available and guide you through the safest next step. Whether your company can be rescued or needs a structured closure, you’ll get clear, confidential advice grounded in regulated expertise.
Get in touch for free, confidential advice and take control of your next move.
