Insolvency means the inability to pay one's debts as they fall due. Usually used in Business terms, insolvency refers to the inability for a 'limited liability' company to pay off debts. An Insolvency Solicitor is one who provides debt management advice for people or companies considering bankruptcy or voluntary arrangements. Why do you need to find a solicitor? If you are a business organization or an individual not being able to pay debts, you may want to consult an insolvency solicitor.

On the 2nd May 2008, the Insolvency Service released the latest insolvency statistics. They have been extremely important to judge the state of economy, especially in current economic scenario. There were 3,210 liquidations in England and Wales in the first quarter of 2008 on a seasonally adjusted basis. This was a 2% increase from the previous quarter and an increase of 4% on the same period a year ago. 0.6% of active companies went into liquidation in the twelve months, ending Q1 2008 - same as the previous quarter and the corresponding quarter of 2006. Although personal debts continue to be a major concern, the level of liquidation insolvency has decreased from the previous time. There has been an increase of 1.7% in individual insolvencies in England and Wales from the previous years. The figures comprise 15,651 bankruptcies, an increase of only 0.1% on the previous quarter and 9,614 Individual Voluntary Arrangements (IVA), an increase of 4.3% on the previous quarter. Hence one can see these worrying figures of insolvency rising, and the best move for any company would be to find a solicitor, more precisely, an Insolvency Solicitor. But before finding a solicitor, one has to consider the prospects of insolvency, whether it is for the individual or for the business organization. Depending on that, professional or personal advice can be sought from the Insolvency Solicitor.

The debt management industry today is uncontrolled. This has been a prime reason for any company to find a solicitor. It has become a major cause of concern for clients when help is what they are in dire need of. There are many cases of "misselling" in the saturated world market today, as people choose to repay their debts by means of expensive repayment schemes rather than bankruptcy. However, IVA may not be the best-suited option too. An Insolvency Solicitor will help you through this situation. The solicitor will let you know about your rights. You may owe money and still possess rights. The advisor outlines you on how you can retain any assets that you may have. Thus you will be in a better position by choosing a debt repayment plan that has been approved by your creditors. When Business organizations find a solicitor corresponding to their needs with good professional knowledge, they can make a complete recovery from their trading difficulties. Many full service law firms have an in house department that deal with insolvency and help with all areas of business recovery process. It may also include sorting out contractual problems relating to property and employment, gathering book debt, and even reforming the company to a better financial state for future development. The full service law firms also advice creditors on how to deal with business that are insolvent.