Statement of Insolvency Practice

When your business faces financial difficulty, the right legal strategy can make the difference between recovery and ruin. At Empire Business Law, our attorneys guide companies through every stage of financial distress with deep experience in statement of insolvency practice and business restructuring. We help business owners navigate complex insolvency requirements, minimize risk, and preserve long-term value—so they can move forward with clarity and control.

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Over the years, Empire Business Law has helped with the launch of many startup companies. We are sensitive to the needs of entrepreneurs. Our focus is to advise founders on typical matters such as raising capital safely, how to protect their intellectual property and to accelerate their growth sensibly.

What Is a Statement of Insolvency Practice (SIP)?

A statement of insolvency practice, commonly referred to as a SIP, outlines the professional standards and ethical obligations that govern insolvency proceedings. It ensures that directors, creditors, and insolvency practitioners follow the correct procedures when a business is no longer able to meet its financial obligations.


For business owners, understanding and complying with the statement of insolvency practice is essential to avoid personal liability, protect corporate assets, and maintain transparency with creditors. At Empire Business Law, our legal team ensures that every step—from financial disclosure to restructuring or winding down—is conducted in strict compliance with these professional standards.

Expert Guidance Through Every Stage of Insolvency

Financial distress does not have to mean the end of your business. With the right legal strategy, many companies can stabilize, restructure, or achieve an orderly transition. Our lawyers are experienced in the practical and legal nuances of statement of insolvency practice and provide comprehensive support in:



  • Assessing insolvency risks and director obligations
  • Advising on compliance with applicable SIP standards
  • Drafting and reviewing financial disclosures and statements
  • Negotiating with creditors and financial institutions
  • Structuring workouts, reorganizations, and liquidations


Every decision during this period carries lasting consequences. Empire Business Law ensures that your rights are protected, your duties are met, and your strategy is aligned with your long-term goals.

Why Businesses Trust Empire Business Law

At Empire Business Law, we understand that insolvency issues are not just financial—they are deeply personal and operational. Our approach is built around protecting the business you’ve built while ensuring full legal compliance. Clients choose our firm for:

  • Extensive experience in corporate, insolvency, and restructuring matters
  • Practical, growth-minded strategies that go beyond compliance to protect future opportunity
  • Value-based billing that provides transparent, predictable legal costs
  • Personalized counsel designed for small to mid-sized business owners



We focus on more than just getting you through a financial crisis—we help you emerge stronger, informed, and legally secure.

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How a Statement of Insolvency Practice Protects Business Owners

A statement of insolvency practice protects business owners by promoting transparency and accountability during financial distress. When properly followed, SIP standards help directors demonstrate that they acted responsibly and in the best interest of creditors. This can reduce exposure to claims of wrongful trading, misfeasance, or breach of fiduciary duty.


By working with Empire Business Law, you’ll have experienced counsel ensuring that your filings, communications, and decisions reflect full compliance with these standards. We translate complex insolvency procedures into practical steps—so you can make informed choices with confidence.

Frequently Asked Questions About Statement of Insolvency Practice

  • 1. What is the purpose of a statement of insolvency practice?

    The statement of insolvency practice sets out the professional and ethical guidelines for handling insolvency cases. Its purpose is to ensure fairness, transparency, and consistency in how insolvency practitioners, directors, and creditors conduct themselves throughout the process.

  • 2. When should a business seek legal help regarding insolvency?

    If your company is struggling to meet its debts, or if you’re concerned about solvency status, you should seek legal advice immediately. Early consultation allows Empire Business Law to help you assess risk, understand your obligations, and identify alternatives before the situation escalates.

  • 3. How does compliance with the statement of insolvency practice help avoid liability?

    Following the statement of insolvency practice demonstrates that a director has acted with integrity and in accordance with established professional standards. This record of good faith can significantly reduce personal liability if creditors later challenge business decisions.

  • 4. Can insolvency procedures help a business recover?

    Yes. Insolvency procedures can provide structure and breathing room for businesses to reorganize debt, negotiate with creditors, or restructure operations. With experienced legal support, companies can use these processes strategically to achieve long-term recovery.

  • 5. How can Empire Business Law assist with insolvency compliance?

    Empire Business Law provides comprehensive support in reviewing financial disclosures, ensuring compliance with SIP standards, advising directors on fiduciary duties, and representing your interests in negotiations or proceedings. We help you handle insolvency the right way—ethically, strategically, and with your business’s future in mind.

Secure Your Business Future with Empire Business Law

Whether your company is navigating temporary financial hardship or approaching formal insolvency, Empire Business Law is your trusted legal partner. We help business owners comply with every aspect of the statement of insolvency practice, reduce personal and corporate risk, and build a foundation for future growth.



📞 Call (855) 781-7705 or book a consultation online to discuss your situation confidentially with an experienced business attorney today.

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