Check if a company is insolvent
Enter a company name or number. We check accounts, status, gazette notices, CCJs, and director behaviour in one search.
The two legal tests of insolvency
Under UK insolvency law, a company is insolvent if it fails either of two tests. Courts, creditors, and insolvency practitioners use these tests to determine whether formal proceedings should begin.
Balance sheet test
Total liabilities exceed total assets. The company owes more than it owns. You can check this in the filed accounts at Companies House: look at net assets (or net liabilities) on the balance sheet. A negative figure means the company fails this test.
Cash flow test
The company may be unable to meet obligations as they fall due. Even a company with assets exceeding liabilities can face cash pressure if it cannot convert those assets to cash quickly enough. Review dated filings, formal notices, payment-practice records where available, and current evidence before making a decision.
How to check if a company is insolvent
Companies House status
Search the company on Companies House. The status field tells you immediately if it is in administration, liquidation, or receivership. If the status is "Active" but you still have doubts, check the other sources below.
Filed accounts (net liabilities)
Download the most recent accounts. If total liabilities exceed total assets (negative net assets), the company is balance-sheet insolvent. Many companies trade through this temporarily, but combined with other warning signs it is serious.
The Gazette (winding-up petitions)
Search The London Gazette for the company name. A winding-up petition means a creditor has asked the court to liquidate the company. An administration notice means an administrator has been appointed. These are formal insolvency events.
CCJ register (cannot pay debts)
County court judgments are separate evidence that should be verified from the relevant official source. Multiple judgments may deserve attention, but they do not by themselves prove the company fails either legal insolvency test.
What Companies House status codes mean
Active
The company is on the register and has not entered any formal insolvency process. This does NOT mean the company is solvent. Many insolvent companies remain "Active" until proceedings begin.
Active (Proposal to Strike Off)
Companies House intends to remove the company from the register. This may be voluntary (directors applied) or involuntary (failure to file). Creditors can object within 2 months. Sometimes used by directors to avoid formal insolvency.
In Administration
An insolvency practitioner (administrator) has taken control. The company is protected from creditor action by a moratorium. The administrator will try to rescue the business, achieve a better result for creditors, or sell assets.
Liquidation
The company is being wound up. Assets are being sold and distributed to creditors in order of priority. Once complete, the company will be dissolved. Can be voluntary (CVL) or compulsory (court order).
Dissolved
The company no longer exists on the register. It has been removed, either after liquidation, administration, or strike-off. Creditors may still be able to apply to restore the company to the register in some circumstances.
Receivership
A receiver has been appointed by a secured creditor (usually a bank) to recover money owed under a fixed or floating charge. The receiver acts in the interest of the appointing creditor, not all creditors.
If the company IS insolvent: your rights as a creditor
Once formal insolvency proceedings begin, you have specific rights under UK law:
- File a proof of debt. Submit your claim to the insolvency practitioner with supporting invoices and correspondence. There is usually a deadline.
- Attend the creditors meeting. You can attend (or appoint a proxy) to hear the insolvency practitioner's proposals and ask questions.
- Vote on proposals. Creditors vote on the insolvency practitioner's proposals (e.g. whether to accept a CVA or approve the administrator's strategy). Voting power is proportional to the debt owed.
- Report director conduct. If you believe the directors traded wrongfully, committed fraud, or transferred assets to avoid paying creditors, report this to the Insolvency Service. They investigate director conduct in all insolvencies.
Who needs a company insolvency check?
Supplier who just heard a customer might be insolvent
You have outstanding invoices and someone mentioned the company is in trouble. You need to confirm or rule out insolvency right now, before issuing more goods on credit.
Evidence review before a material decision
You are assessing a company that may be under pressure. Confirm the legal entity, current status and source dates, then obtain qualified advice for any legal or financial decision.
Business considering extending large credit
A new customer wants 60-day terms on a large order. Before you agree, you need to know whether the company is financially stable or approaching insolvency.
Job candidate checking a prospective employer
You have been offered a role and want to make sure the company is not about to collapse. Checking insolvency status before accepting protects your career and any notice period owed.
Do not wait for the gazette notice.
RecoupIQ helps you see the official status, filing position, notices, charges and other available public evidence before you commit further exposure. It does not predict insolvency or turn missing evidence into a favourable result. Quick Check: £29, no subscription required.
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A single check shows you the insolvency position today. Monitoring alerts you the moment it changes. RecoupIQ monitoring (from £19.99/mo) notifies you within 24 hours of any new signal: gazette notices, status changes, new charges, director resignations, or late filings. Available via the web dashboard or the Microsoft 365 Trust Check app (per-seat for teams). RecoupIQ is a Microsoft partner.
See monitoring plansRelated guides
- Is this company going bust? 10 warning signs
- Company going into administration: what creditors need to know
- Compulsory liquidation: process, timeline, and creditor rights
- Creditors voluntary liquidation (CVL) explained
Last reviewed: July 2026. General information for UK creditors. Not legal advice. RecoupIQ Ltd, Company No. 16947526, ICO ZC077511. Microsoft Partner.