Getting paid

My lawyer has ‘gone bust’

Until recently, it was a relative rarity that any firm of solicitors would enter in to any formal insolvency procedure such as liquidation, administration or bankruptcy. However, the credit crunch and changes in the legal market place have made the insolvency of law firms a very real risk. In recent years, a number of high profile law firms have become insolvent, including the administration of one of the largest firms in the UK, Halliwells LLP, in 2010.

However, provided that claims have been properly notified, the insolvency of a law firm ought not to affect the availability of its professional indemnity insurance cover for successful claims following negligent advice.