What is an Insolvent Trading claim?
This is a claim made by a liquidator against a director of a company for payment of compensation. The quantum of the claim is based on the amount of unpaid debt that the company incurred after it became insolvent and after the directors should have realized that the company was insolvent. A director may be liable when they breached their duty to stop the company from incurring debts whilst it is insolvent.
