What everyone asks about the personal insolvency history.
Can I check if a company director was personally bankrupt?+
Yes, the Individual Insolvency Register (IIR) is free and public at gov.uk. It shows everyone currently in IVA, bankruptcy, or DRO, plus events discharged within the last 6 years. Search by name and date of birth. Almost no commercial DD process runs this check, even though personal insolvency is one of the strongest leading indicators of company failure.
What's an IVA (Individual Voluntary Arrangement)?+
It's a formal agreement between a debtor and their creditors to pay a portion of debts over a fixed period (usually 5-6 years) instead of going bankrupt. About 40,000 IVAs start each year in the UK. After the IVA ends, the entry stays on the public register for some time, but the debtor is discharged from the original debts.
Does personal bankruptcy stop someone from being a director?+
An undischarged bankrupt is automatically prohibited from acting as a director of a UK Ltd company under Section 11 of the CDDA. Once discharged (usually 12 months from the bankruptcy order), the prohibition lifts unless extended via a Bankruptcy Restriction Undertaking (BRO). Discharged bankrupts CAN be directors, but their financial-mismanagement track record becomes due-diligence-relevant.
Should I refuse to work with someone who's been personally bankrupt?+
Not automatically, discharge is a real legal status. But increase your risk premium: deposit, personal guarantee, milestone billing, NET-7 instead of NET-30. Tier the premium by time-since-discharge: < 1 year ago = 50% deposit, 1-3 years = 30%, 3-6 years = 15%. The further from the event, the lower the premium.
How is the Individual Insolvency Register different from a credit check?+
Standard commercial credit checks (run by Experian, Equifax, Creditsafe, etc.) include personal bankruptcies for 6 years from discharge but often miss IVAs and DROs. The IIR is the authoritative source. Commercial checks also focus on the COMPANY; the IIR focuses on the INDIVIDUAL, and individual financial history strongly predicts company financial outcome.