Understanding Insolvency is a guide to business recovery and insolvency procedures in the UK and the work of the business recovery and insolvency profession. The guide has been prepared by the Association of Business Recovery Profesionals (R3). It defines and explains most insolvency procedures and terms, but should only be regarded as an introduction to a complex subject.

If you require advice about insolvency, you should either speak to your professional adviser or contact one of our licensed insolvency practitioners.

The majority of business insolvencies could have been prevented by early management action. In many cases, managers just do not have the information they need to recognise a crisis. The worst managers just ignore the warning signs. Thinking the unthinkable might just make the difference between weathering the storm and sinking without trace.

This booklet has been published by R3 and is divided into three sections. The first describes the rescue culture looking at the facts behind business rescue and describes how a philosophy of enlightened self-interest can help you overcome financial crisis. The second deals with customers whose financial problems could affect your own financial health. The third aims to help you understand the steps you can take if financial crisis ever knocks on your company's door.