A claim issued against a defendant who is already bankrupt or in liquidation can be stayed, struck out or simply unrecoverable. The information that would have warned you is usually public. It sits in The Gazette, the UK's official public record, and a check takes minutes if you know what to look for.
This guide sets out which insolvency events matter to a litigation team, which notices evidence them, and how to run the check across a caseload rather than one name at a time.
Why a pre-action insolvency check matters
Insolvency changes the legal position of a defendant, not just their ability to pay. Three consequences matter most to a litigation solicitor:
- Procedural restrictions. Proceedings against a bankrupt individual or a company in compulsory liquidation generally cannot be started or continued without the court's permission.
- Recovery. Once a formal procedure starts, creditors are usually dealt with through that procedure. A judgment may leave you as an unsecured creditor sharing in a distribution rather than enforcing directly.
- Costs. Costs spent on a claim that cannot proceed, or that should have been a proof of debt, are hard to justify to a client.
A check before the letter of claim, and again before issue, is cheap compared with any of these outcomes.
The statutory points to keep in mind
These are the provisions most often relevant. Confirm the current text and how it applies to your facts.
Individuals: bankruptcy
Under section 285 of the Insolvency Act 1986, once a bankruptcy order is made, a creditor with a provable debt generally cannot start or continue proceedings in respect of that debt without the court's permission, and cannot pursue remedies against the bankrupt's property or person for it.
Companies: winding-up
Under section 130(2) of the Insolvency Act 1986, once a winding-up order has been made, no action or proceeding can be started or continued against the company except with the court's permission.
Two related points are easy to miss:
- Section 127 can render property dispositions made after the commencement of a compulsory winding-up void unless the court validates them. For a compulsory winding-up, commencement relates back to the presentation of the petition, which is why a petition notice matters before any order exists.
- Administration brings its own moratorium on legal process under Schedule B1 to the Act, which is a different procedure with a different notice trail.
Voluntary liquidations follow a different route. Section 130(2) does not apply automatically, but the liquidator's appointment still changes who you deal with and how you recover.
Which Gazette notices to look for
The Gazette publishes the statutory notices that give these events public effect. For a pre-action check, the relevant ones are:
- Winding-up petitions. Evidence that a creditor has asked the court to wind up a company. This is the earliest warning and it matters because of section 127.
- Winding-up orders. The court has ordered the company wound up. Proceedings generally need permission from this point.
- Bankruptcy orders. The individual has been made bankrupt. Check the date and the court.
- Appointment of liquidators. Resolutions and notices for voluntary liquidations, including the liquidator's name and the date for claims.
- Appointment of administrators. The moratorium point above.
Each notice carries the details you need to act: the name, the company number or address, the court and case number, and the office-holder's contact details.
A practical pre-action workflow
Most litigation teams do not need a complex process. They need a repeatable one.
Step 1: Check at instruction
When you take instructions, check the proposed defendant. If there is a petition, order or appointment, tell the client before spending on a letter of claim.
Step 2: Check again before issue
Insolvency can arrive between the letter of claim and the claim form. Repeat the check close to the issue date and record the date and result on the file.
Step 3: Check before enforcement
Before instructing enforcement on a judgment, check again. A winding-up petition or administration notice published after judgment changes the strategy.
Step 4: Record the evidence
Save the notice reference and the search date. If a question later arises about what you knew and when, a dated record is the answer.
Name matching and its pitfalls
The common failure is not missing a notice. It is mismatching one.
- Company names are often similar. Use the company number wherever you have it.
- Individuals share names. Use address, postcode and any trading name to confirm the match.
- Name changes mean a notice may sit under a former name. Check previous names on Companies House.
- Sole traders may appear under the individual's name rather than the trading name.
A match based on the name alone should be treated as a lead to verify, not a conclusion.
Screening a caseload instead of a single name
Checking one defendant on The Gazette's own search is straightforward. Checking a whole book is not. Firms with high-volume recoveries, a panel of defendants or a portfolio of matters face the same question many times over.
There are three broad options on The Gazette's side: its public search, which handles one query at a time; its Research Service, which is manual and charged per name from around £30 for a single name, with published rates of £24 per name for two to five and £20 per name for six to ten; and a sales-led Data Service subscription for organisations that want a data feed.
Gazette Search UK is an independent service built for the bulk case. You upload a CSV or Excel file, or paste names, company numbers or postcodes, and it screens them against notices from The Gazette. The homepage demo takes up to 150 entries free, with no signup. A full run handles up to 50,000 identifiers. Results come back structured, with parties, practitioners, courts, case numbers and deadlines, split into matched and not found, and exportable to CSV.
Credits are pay-as-you-go and are charged only when a search finds a notice. There is no subscription and no minimum. Watchlists and API access are on the roadmap and not yet live.
You can try it at gazette-search.co.uk and see charges on the pricing page.
What a Gazette check does not cover
Be precise about the limits when you advise a client.
- A Gazette search shows what has been published. There can be a gap between an event and its publication.
- Not every insolvency event is gazetted in the same way or at the same time.
- A clear result is not a guarantee of solvency. It means no relevant notice was found.
- Some matters need other sources, such as the court record, Companies House and the Individual Insolvency Register.
Use the Gazette check as one layer of due diligence, not the only one.
Frequently asked questions
Do I need the court's permission to sue a company in liquidation?
After a winding-up order, section 130(2) of the Insolvency Act 1986 means proceedings generally need the court's permission. Voluntary liquidations are treated differently, so check which procedure applies and take advice on your facts.
Where can I see whether someone has been made bankrupt?
Bankruptcy orders are published in The Gazette, and the Individual Insolvency Register is another official source. Checking both gives a fuller picture, and the Gazette notice gives you the date and court.
How often should I repeat the check?
At instruction, before issue and before enforcement is a sensible minimum. Insolvency can start at any point in a matter, so repeat the check whenever significant time passes.
Can I check many defendants at once?
Yes. The Gazette's own search handles one query at a time, while bulk tools let you upload a list and screen it in one run. Gazette Search UK accepts up to 50,000 identifiers per run and charges only when a search finds a notice.
Is a clear Gazette result proof that a defendant is solvent?
No. It means no relevant notice was found at the time of the search. Publication can lag the event, and other sources may hold information the Gazette does not.