--- title: "Insolvency Practitioner Negligence: Sue an Administrator" url: https://professionalnegligenceclaimsolicitors.co.uk/insolvency-practitioner-negligence-sue-an-administrator/ date: 2026-07-17 modified: 2026-07-17 author: "pncs" description: "Administrators and liquidators are appointed to act fairly, competently and in the best interests of a company's creditors. When they fail to meet that standard, the financial consequences for creditors, directors and shareholders can be severe. This article explains when a claim can be brought against a negligent insolvency practitioner and how our specialist team can help." categories: - "Auditor Negligence" - "Lawyers" - "legal" - "Legal Negligence" - "LEXLAW" - "Limitation periods" - "negligence" - "Negligence Claim" - "professional negligence" - "Professional Negligence Cases" - "Uncategorized" tags: - "claims against administrators" - "claims against liquidators" - "creditor claim negligence" - "director claim insolvency practitioner" - "HMRC insolvency negligence" - "insolvency law negligence" - "insolvency practitioner duty of care" - "insolvency practitioner negligence" - "negligent administrator claim" - "negligent liquidator claim" - "professional indemnity insolvency" - "professional negligence insolvency" - "receiver negligence claim" - "second opinion negligence claim" - "winding up petition negligence" image: https://professionalnegligenceclaimsolicitors.co.uk/wp-content/uploads/Professional-Negligence-1-1024x568.png word_count: 995 --- # Insolvency Practitioner Negligence: Sue an Administrator ## What Is Insolvency Practitioner Negligence? Insolvency practitioners, including administrators, liquidators and receivers, owe legal and professional duties to the companies and creditors they act for. Where an insolvency practitioner fails to realise assets properly, mismanages the process, or acts outside their authority, the resulting loss may give rise to a [claim against a negligent administrator or liquidator](https://professionalnegligenceclaimsolicitors.co.uk/claims-against-negligent-administrators-insolvency-practitioners-liquidators-legal-advice-second-opinion/). As with any [professional negligence claim](https://professionalnegligenceclaimsolicitors.co.uk/professional-negligence-claims/), the claimant must show a duty of care, a breach of that duty, and a resulting financial loss. Insolvency practitioners are subject to a strict regulatory framework and are required to hold professional indemnity insurance, which means that a well evidenced claim can often be satisfied even where the individual practitioner has limited personal means. Our [specialist solicitors and barristers](https://lexlaw.co.uk/) regularly advise creditors and directors who have suffered loss as a result of substandard conduct during an insolvency process, working closely with our colleagues who handle [winding up petitions and corporate insolvency disputes](https://windinguppetitionsolicitors.co.uk/) across London. ### Want legal advice on the merits of your case? Your legal enquiry goes immediately to our PN litigation team in Middle Temple, London. We can't take on low value cases or give free legal advice - our minimum fee is £1750 +VAT for a conference with a solicitor and barrister. Call us on +442071830529. [Check My Case Now ✔](https://professionalnegligenceclaimsolicitors.co.uk/litigation-case-assessment-form/) ## Common Examples of Administrator and Liquidator Negligence The most frequent complaint against insolvency practitioners is the failure to realise the full value of a company's assets, whether through a rushed sale, inadequate marketing of a property, or accepting an offer well below market value without proper justification. Where this occurs, creditors and shareholders who would otherwise have received a larger distribution have grounds to explore a [claim for business losses caused by professional failure](https://professionalnegligenceclaimsolicitors.co.uk/can-directors-sue-professional-advisers-for-business-losses/), a topic our [professional negligence practice](https://lexlaw.co.uk/practice-areas/professional-negligence-solicitors-london) covers extensively. Other common failures include delaying the insolvency process unnecessarily, failing to investigate the conduct of directors where clear grounds existed, mismanaging tax obligations arising during the administration, and failing to communicate properly with creditors. Where an insolvency has intersected with an unresolved [HMRC investigation](https://taxdisputes.co.uk/hmrc-tax-investigations/), poor handling by the practitioner can leave creditors, including HMRC itself, significantly worse off than they should have been, an issue we frequently see alongside contested [HMRC enforcement action](https://taxdisputes.co.uk/hmrc-enforcement-action/). ## What Legal Duties Do Administrators and Liquidators Owe? An insolvency practitioner owes duties both to the company in respect of which they are appointed and, in many circumstances, to its creditors collectively. These duties include acting with reasonable skill and care, exercising independent judgement, and complying with the statutory framework governing the specific insolvency procedure, whether that is administration, liquidation or receivership. A failure to meet these standards can found a claim in the same way as negligence by any other regulated professional, a principle explained further in our [glossary of key negligence terminology](https://professionalnegligenceclaimsolicitors.co.uk/glossary-key-negligence-legal-terminology-terms-guide-a-to-z-litigation-advice/). Importantly, an insolvency practitioner is not liable simply because a creditor is unhappy with the outcome of the process. As with any professional, they are judged against the standard of a reasonably competent practitioner in their field, not against a standard of perfection, a distinction addressed in detail on our [professional negligence FAQs page](https://professionalnegligenceclaimsolicitors.co.uk/professional-negligence-faqs/). Where a practitioner has also been appointed in circumstances involving a disputed [winding up petition](https://windinguppetitionsolicitors.co.uk/winding-up-petition/), the interaction between the insolvency process and the underlying dispute requires careful legal analysis. ## Can You Bring a Claim Against a Negligent Insolvency Practitioner? Whether you can bring a claim depends on your relationship to the insolvent company and the nature of the loss you have suffered. Creditors, former directors and shareholders may all, in appropriate circumstances, have standing to pursue a claim, and the starting point is always a careful assessment of the merits, similar to the process we apply when advising on any [professional negligence court claim](https://professionalnegligenceclaimsolicitors.co.uk/start-issue-professional-negligence-court-claim-case-legal-advice/). Time limits apply strictly in these cases, and our guidance on the [limitation period for professional negligence claims](https://professionalnegligenceclaimsolicitors.co.uk/limitation-period-in-professional-negligence-claims/) explains how those deadlines are calculated. Claims against insolvency practitioners are often complex because they sit at the intersection of insolvency law and professional negligence law, and they frequently involve related enforcement issues, including outstanding [HMRC tax liabilities](https://taxdisputes.co.uk/hmrc-vat-investigations-evasion-input-ouput-double-taxation-tribunal-legal-advice/) left unresolved by the insolvency process. Our team is well placed to identify these overlapping issues early, drawing on the wider resources of [our specialist tax disputes practice](https://taxdisputes.co.uk/) where HMRC's own position has been affected by a practitioner's conduct. ## How LEXLAW Can Help With Your Claim Our City of London team of dual qualified solicitors and barristers regularly advises creditors, directors and shareholders on claims against negligent administrators, liquidators and receivers, drawing on the same rigorous approach we apply across every [professional negligence case study](https://professionalnegligenceclaimsolicitors.co.uk/case-studies/) we handle. Where your dispute also involves a live or threatened [winding up petition](https://windinguppetitionsolicitors.co.uk/contact/), our integrated team can address both matters together rather than treating them in isolation. If you believe you have suffered loss as a result of the negligent conduct of an insolvency practitioner, we recommend seeking a [second opinion](https://professionalnegligenceclaimsolicitors.co.uk/second-opinion-legal-fixed-fee-new-representation-litigation-advice/) at the earliest opportunity, particularly given the strict limitation periods that apply. Contact our team today through our [case assessment form](https://professionalnegligenceclaimsolicitors.co.uk/litigation-case-assessment-form/) for a confidential review of your position. ### Frequently Asked Questions (FAQs) 1. Who can bring a claim against an administrator or liquidator? Creditors, former directors and shareholders may have standing depending on the loss suffered. Our [insolvency negligence page](https://professionalnegligenceclaimsolicitors.co.uk/claims-against-negligent-administrators-insolvency-practitioners-liquidators-legal-advice-second-opinion/) explains this further. 2. What counts as negligent conduct by an insolvency practitioner? Undervaluing assets, unnecessary delay, and failing to investigate director conduct are common examples, discussed alongside our wider [professional negligence expertise](https://lexlaw.co.uk/). 3. Is there a time limit to bring a claim? Yes. Strict limitation periods apply, set out in detail on our [limitation period guidance](https://professionalnegligenceclaimsolicitors.co.uk/limitation-period-in-professional-negligence-claims/). 4. Can I claim if HMRC was also a creditor in the insolvency? Yes, and this often adds complexity. Our [tax disputes team](https://taxdisputes.co.uk/hmrc-tax-investigations/) can advise where HMRC's position was affected. 5. What should I do if I suspect practitioner negligence during a winding up? Seek advice immediately. Our colleagues handling [winding up petitions](https://windinguppetitionsolicitors.co.uk/) can coordinate with our negligence team on your behalf.