HomeFWJ TakeawayResourcesValidation order bankruptcy

If you are served with a bankruptcy order - it is vital to seek a validation order from court in order to keep trading. Our brilliant team can assist you on this - and help get your bankruptcy order removed.

Validation order bankruptcy really covers the situation where a company has been served with a winding up petition or winding up order. That is usually due to a creditor taking debt recovery action by using a winding up order to try and recover its debt.

  • whilst the term “bankruptcy” strictly applies to personal insolvency, it is a term that is commonly applied to company insolvency as well.
  • in order for a company to avoid validation order bankruptcy or formal liquidation, it often applies to court for what is known as a validation order pursuant to Section 127 of the Insolvency Act 1986.
  • this allows a company to make payments from what is often a frozen bank account situation and those important payments then allow the company to continue trading and survive. Without being able to make key payments to key suppliers, the company can quickly cease to trade and go into formal insolvency.

The validation order section of the Insolvency Act is specifically designed to enable companies to avoid that scenario, but the conditions are strict, and a proper detailed witness statement is needed in order to persuade the court that a validation order is appropriate.


At Francis Wilks & Jones, we can help avoid validation order bankruptcy situations. We can help draft the evidence you need and make the application to court for a validation order hearing. Contact one of our team of validation order and company rescue experts and we can help you today.

Case studies

View all case studies

Contact us in confidence