Navigating insolvency - whether personally or for a company - can feel like treading difficult ground with lasting consequences.
At McAlister & Co, we believe that understanding what comes next is vital to moving forward with confidence.
In this article, we’ll unpack what insolvency means for individuals and businesses, explore the Insolvency Register, clarify exactly how long you stay on it, and explain what happens once your time is up. Above all, we’re here to reassure you and help you find practical solutions moving forward.
So, if you’ve ever wondered what the Insolvency Register is or have asked “how long do you stay on the Insolvency Register?” we’re here to answer your questions.
What Is Insolvency?
Insolvency for Individuals
When a person is unable to pay their debts, they may enter personal insolvency proceedings - like bankruptcy, an individual voluntary arrangement (IVA), or a debt relief order (DRO). These formal processes allow you to address unmanageable debt under legal protection. While they can be distressing, they also offer a structured path to a fresh start.
Company Insolvency
For businesses, insolvency occurs when a company cannot pay its debts as they are due (cashflow insolvency), or when its liabilities exceed its assets (balance sheet insolvency). In the UK, directors must act swiftly if insolvency is suspected to avoid wrongful trading or disqualification.
How Can a Company Become Insolvent?
Insolvency doesn’t usually happen overnight - it’s often the result of ongoing financial pressure. Common causes include declining sales, rising costs, poor cash flow management, late customer payments, or the loss of a key contract. Sometimes external shocks, like economic downturns or global events, can push an already stretched business into difficulty.
Warning signs to watch for include mounting unpaid bills, missed HMRC payments, creditor pressure, borrowing to cover everyday costs, and an inability to pay staff or suppliers on time. If these red flags are present, it’s vital to seek professional advice early - after all, the sooner you act, the more options you’ll have to rescue your business.
Options for Companies Facing Insolvency
When a company becomes insolvent, it’s easy to feel like the situation is unmanageable — but in reality, there are several formal rescue and closure options designed to protect both the business and its creditors.
Company Voluntary Arrangement (CVA)
A CVA is a formal agreement between an insolvent company and its creditors to repay debts over a fixed period — usually at a reduced rate. The company continues trading under the control of its directors, while an insolvency practitioner oversees the agreement. This option is ideal for businesses that are fundamentally viable but struggling with temporary cash flow issues or historical debt. It provides breathing space, helps preserve jobs, and often leads to a full recovery when managed effectively.
Administration
Administration offers legal protection from creditor action while an insolvency practitioner takes temporary control of the company. The goal is to rescue the business, sell it as a going concern, or achieve a better return for creditors than liquidation would allow. During administration, creditors cannot take legal action against the company without court permission. This option is especially useful when a business needs time to restructure, attract investment, or prepare for a sale.
A pre-pack administration may also be considered. This involves arranging the sale of the business before the company formally enters administration, allowing the assets to be transferred immediately after appointment — often to a new company run by the same directors. It can protect the business’s value and continuity but must be carried out transparently and in line with regulatory guidelines.
Liquidation
If a business cannot be rescued, liquidation might be the only option. This process involves closing the company, selling its assets, and distributing the proceeds to creditors in a legally prescribed order.
- A creditors’ voluntary liquidation (CVL) is initiated by the directors when the company is insolvent and has no realistic path to recovery. It’s a proactive step that ensures assets are handled correctly and director obligations are met.
- A compulsory liquidation is usually triggered by a court order following a creditor petition. It’s more costly and stressful, which is why early action is key to avoiding it.
Although liquidation signals the end of the business, it can also be a responsible step that allows directors to draw a line under the situation and explore new opportunities without the weight of unresolved debt.
What Is the Insolvency Register?
The Insolvency Register is a public database maintained by the UK’s Insolvency Service. It records personal insolvency events such as bankruptcy, DROs, IVAs, and their associated restrictions (e.g., Bankruptcy Restriction Orders).
The register typically includes:
- Name, last known address, occupation, date of birth
- Details of the insolvency event (e.g., date and type of order)
- Names of trustees or insolvency practitioners involved
- Any legal restrictions or undertakings
How Long Do You Stay on the Insolvency Register?
A common concern we are often asked about is “how long do you stay on the insolvency register?” Here’s how it works.
During the Insolvency Period
- Bankruptcy usually lasts for 12 months, though it can be extended if terms are breached
- IVAs and DROs run for a fixed term, typically 12–60 months, then enter a completion phase.
Discharge and Removal
- Once you are discharged - normally after 12 months for bankruptcy - your record remains on the Insolvency Register for a further three months
- For DROs and IVAs, your details also stay for three months after completion or revocation
Total Length
- That means your entry may remain for up to 15 months from the start of the insolvency event .
Credit Reference Files
- Insolvency remains on your credit report for six years from the bankruptcy order or IVA/DRO start date
Other Public Records
- The London Gazette publishes bankruptcy announcements permanently
- The Land Charges register entry is usually removed after five years
Company Insolvency and Directors
Company insolvency doesn’t add you individually to the Insolvency Register - but it may trigger consequences like director disqualification, which can last 2–15 years. The restrictions and outcomes depend on conduct during the company’s financial decline.
Talk to a Licensed Insolvency Practitioner for Further Advice
Understanding what stays on public and credit records - and for how long - helps you plan confidently for the future. While removal from the insolvency register is relatively quick, the impact on lending, insurance, and employment can last longer, especially given the six-year credit notice.
That’s why it’s so important to enlist the help of a licensed insolvency practitioner to guide you through each stage of the process, so you can understand your legal duties and options, negotiate repayment plans or debt restructuring, secure fair treatment in formal proceedings, and prepare for life after insolvency.
And that’s exactly where we come in! McAlister & Co’s team is here to provide clear advice, tailored to your circumstances. We approach every situation with empathy and expertise - because life doesn’t stop with insolvency, and neither should your future.
So, if you’re wondering “How long do you stay on the insolvency register?”, McAlister & Co is here with trusted support, offering clarity, compassion, and guidance. If you’re facing personal or company insolvency, don’t wait. Talk to our licensed insolvency practitioners at McAlister & Co today. We’re here to advise, reassure, and guide you every step of the way.