A Creditors' Guide To Guernsey Insolvency

In this guide we hope to give our readers a refresher course on Guernsey's insolvency laws in the hope that they will be in a better equipped when one of their clients 'goes under'.

One of the more unfortunate things businesses have to contemplate these days is the prospect of clients not paying their bills. In many cases this can mean the creditor itself is in danger of being insolvent and can place pressure on long-standing business and personal relationships.

INSOLVENCY 101

Who's your debtor?

First, it is important to note that both individuals (i.e. natural persons) and companies can be made insolvent and are subject to Guernsey's insolvency laws, although some procedures differ between them. We will set out some of the key differences in this update. The first lesson to be learned though is that the procedure that applies will depend on who the debtor actually is - so it is important to know, when you supply your widgets to the widget shop on the high