Insolvency Practitioner Complaints
When your company is struggling with debt, the advice you get matters.
You may be dealing with HMRC arrears, creditor pressure, cash flow problems, unpaid suppliers or the threat of liquidation. In that position, most directors are not looking for jargon. They want clear, honest advice about what their options are and what happens next.
That is why a recent Insolvency Service report is worth paying attention to.
The Annual Review of Insolvency Practitioner Regulation 2025 found that the Insolvency Practitioner Complaints Gateway received 966 complaints in 2025, compared with 656 in 2024. That is a 47% increase.
This does not mean directors should avoid getting insolvency advice. Most insolvency practitioners operate professionally and are subject to regulation.
But it does show why directors should be careful about who they speak to and what advice they rely on.
Why does this matter for company directors?
If your limited company is in financial difficulty, you may be under pressure to make quick decisions.
You might be wondering whether to keep trading, close the company, enter liquidation, propose a Company Voluntary Arrangement, speak to HMRC, or wait to see what creditors do next.
The wrong advice, or unclear advice, can make an already stressful situation worse.
Good insolvency advice should explain:
- What options are realistically available
- What each option means for the company
- What your responsibilities are as a director
- What happens to creditors, employees and company assets
- What fees are involved
- What the risks are if you delay taking action
You should not feel pushed into one route before your full position has been understood.
What were the most common complaint issues?
The Insolvency Service report shows that, of complaints referred to Recognised Professional Bodies in 2025, the most common issue was communication breakdown, followed by competence and due care.
That is important because insolvency is already stressful enough.
Directors should not be left confused about what is happening, who is dealing with their case, what they need to provide, or what the next steps are.
Clear communication is not just good customer service. In insolvency, it is essential.
What should directors look for?
Before taking insolvency advice, it is sensible to ask a few simple questions:
- Am I speaking to a regulated insolvency professional?
- Have all options been explained, not just liquidation?
- Are the fees clear?
- What happens next?
- What are my duties as a director?
- What happens if I do nothing?
- Who will be my point of contact?
A good adviser should be able to answer these questions clearly and calmly.
If you feel rushed, pressured or confused, take a step back and ask for clarification.
Do not delay getting advice
Being careful does not mean waiting until things get worse.
If your company cannot pay HMRC, suppliers, wages, rent, finance agreements or other debts as they fall due, it is better to get advice early.
Early advice may give you more options and help reduce the risk of creditor action escalating.
It also helps you understand your responsibilities as a director, especially if the company may already be insolvent.
Speak to Business Helpline
At Business Helpline, we provide free, confidential advice to directors of limited companies.
We can help you understand your options, including Creditors’ Voluntary Liquidation, Company Voluntary Arrangements, Administration, HMRC debt solutions and other possible routes.
The first step is simply to understand your position.
You do not have to make a decision before you know your options.
For free, confidential advice, call 0800 088 2142.
