This Act matters when a company is under creditor pressure or trying to restructure. Businesses should understand that rescue processes, moratoriums, supplier restrictions and restructuring tools can affect how quickly they can enforce, terminate or recover money.
Main laws
United Kingdom Act
Corporate Insolvency and Governance Act 2020
The Corporate Insolvency and Governance Act 2020 introduced important UK corporate insolvency and restructuring reforms.
In forceUnited KingdomPlain-English guide4 practical checks
Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.
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Quick read
- This Act matters when a company is under creditor pressure or trying to restructure.
- Businesses should understand that rescue processes, moratoriums, supplier restrictions and restructuring tools can affect how quickly they can enforce, terminate or recover money.
Likely relevant if
- Companies in financial distress
- Suppliers to distressed customers
- Directors considering restructuring options
Check first
- Check insolvency status before terminating or enforcing
- Understand how moratorium and restructuring tools affect creditor action
- Keep supply, credit and payment records current
What this means in practice
Key points
- A customer entering a rescue process can change your enforcement options quickly.
- Supplier termination clauses need insolvency review.
- Directors should seek advice early rather than waiting for a creditor crisis.
When this law usually matters
Most businesses do not need to memorise the whole law. The useful starting point is to know when it is likely to affect a contract, customer journey, employee process, data flow or company decision.
Key points
- Companies in financial distress
- Suppliers to distressed customers
- Directors considering restructuring options
- Credit teams managing unpaid invoices
What to check first
Sense check
- Check insolvency status before terminating or enforcing
- Understand how moratorium and restructuring tools affect creditor action
- Keep supply, credit and payment records current
- Take advice before changing supply terms around insolvency events
Documents and workflows to review
Key points
- Supply terms
- Credit policy
- Retention-of-title clauses
- Director board papers
- Debt recovery process