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Last reviewed: June 2026 · For use in England & Wales · eLitigant is a Community Interest Company (No. 16566612), not a law firm. Always check the current official form on GOV.UK before you file, and sign the statement of truth yourself.
In short
The Insolvency Statement of Affairs (the prescribed IR 2016 form) sets out a company’s or individual’s assets and liabilities on a forced-sale, liquidation basis, with a full creditor list and a statutory declaration or statement of truth. It is the document the liquidator, creditors and the Insolvency Service all work from. Do as much as you can yourself first, then when you genuinely need a practitioner, instruct a regulated, ideally local independent, Insolvency Practitioner. This is information, not legal advice.
The shortcut: eLitigant’s Chris drafts the document for you to this standard, from your details — you check, sign and file. A Community Interest Company, not a law firm; information, not advice.
① Draft it from scratch
Chris drafts your Statement of Affairs on the prescribed IR 2016 form — assets at realisable value, full creditor list, connected-party disclosure — from your facts.Before you pay anyone — do as much yourself as you can
Insolvency Practitioners are regulated — but the “advisers”, lead-generators and middlemen around them often are not. Be wary of upfront fees before any work is done, pressure to liquidate quickly, unsolicited calls or texts after you search online, and anyone who isn’t a named, regulated IP. Many early steps — talking to creditors, the moratorium, the paperwork — you can handle yourself with Chris.
When you genuinely need a practitioner, consider a local, independent, qualified Insolvency Practitioner. You are more likely to get a personal service, a named contact and clear, fair fees — rather than being one case among thousands.
Always check they are regulated, on the official register:
• England & Wales — the Insolvency Service’s register of authorised insolvency practitioners (gov.uk)
• Scotland — Accountant in Bankruptcy (AiB)
• Or check membership of the IPA, ICAEW or ICAS.
② Check the draft you’ve written
Already prepared a draft SoA? Upload it. Chris reviews it for under-listed creditors, wishful asset values and misclassified director loans before it reaches your IP.③ You’ve been served — respond
Received a liquidator query, notice or claim about the company’s affairs? Run it by Chris and see where you stand against your own documents, in minutes.In short: The Insolvency Statement of Affairs (the prescribed IR 2016 form) sets out a company’s or individual’s assets and liabilities on a forced-sale, liquidation basis, with a full creditor list and a statutory declaration or statement of truth — it is the document the liquidator, creditors and the Insolvency Service all work from. eLitigant drafts your Statement of Affairs and supporting schedules, or checks a draft you have written — working from your own documents so you arrive at your Insolvency Practitioner meeting with a clean, professional pack.
The Statement of Affairs is the document every insolvency process pivots on. Creditors read it. Liquidators investigate from it. The Insolvency Service reviews it for misconduct. Wrongly drafted, it is the first exhibit in a disqualification or misfeasance claim. Drafted properly, it anchors the entire proceeding.Work alongside your Insolvency Practitioner — not against them. The IP role is statutory and cannot be replaced. What Chris replaces is the solicitor or paralegal drafting that surrounds the IP’s work. Directors who arrive with clean drafts get faster, cheaper outcomes.
Redraft to Queen’s English perfect — professional standard, within reach.
Facing this as a director?
Time matters in insolvency. Chris drafts the documents this guide describes — to a high, professional standard, the same day. For ongoing matters, Express Case covers the whole procedure, document by document.
Like a court clerk, we explain how to use the tools — we don’t advise on your case.
What goes in
Assets section
- Cash at bank — current balances
- Trade debtors — estimated collectible (not gross)
- Stock — estimated realisable on liquidation basis
- Plant and equipment — forced-sale value
- Land and property — market valuation less sale costs
- Intellectual property — realistically saleable only
- Investments, inter-company debts, goodwill — usually nil or nominal on liquidation
Liabilities section
- Secured creditors — amount owed, security held
- Preferential creditors — employees (wages to £800 per employee), pension contributions, certain HMRC debts
- Floating charge
- Unsecured creditors — trade, HMRC general, loans
- Connected unsecured creditors — directors’ loan accounts
- Shareholders — capital
The deficiency/surplus
Total realisable assets minus total claims = deficiency to unsecured creditors (or surplus to shareholders in MVL).Let Chris draft the document pack
Arrive at your IP meeting with proposal, statement of affairs, and creditor correspondence already drafted. The IP reviews, signs off, administers. Your total legal cost comes down.
The sworn element
In bankruptcy and most corporate procedures, the SoA requires a statutory declaration or statement of truth. Directors swear personally that the information is true to the best of their knowledge and belief. False statements are an offence.Common errors
- Over-valuing assets (wishful thinking) — creates later reconciliation problems
- Under-listing creditors — omitted creditor later claims; raises concealment suspicion
- Connected-party loans misclassified — all director/shareholder loans must be separately disclosed
- Missing hidden assets — directors’ personal guarantees, cross-charges, indemnities
- Disclosures on transactions at undervalue / preferences — must be disclosed proactively
Realisation basis — the crucial point
Going-concern valuations are not the basis. Forced-sale / liquidation valuations are. A £100,000 book-value stock may be worth £15,000 on forced sale. The SoA must reflect that — not the historical cost.Creditor list discipline
Every creditor: name, address, date debt incurred, consideration (what the debt is for), amount, any security, any set-off, whether connected. Incomplete creditor lists are the single most common source of liquidator queries.What Chris drafts
- Statement of Affairs on the prescribed IR 2016 form
- Supporting schedules for assets and liabilities
- Connected-party disclosure schedule
- Transactions-at-undervalue / preferences disclosure
- Statutory declaration or statement of truth
- Narrative explanation of unusual items
Prepare to win. Plan not to fail.
The SoA is the document that frames everything the liquidator does next. Draft it so nothing that follows is a surprise.Frequently asked questions
What is the Statement of Affairs?
It is the document every insolvency process pivots on, prepared on the prescribed IR 2016 form. It sets out the company’s assets and liabilities so that creditors, the liquidator and the Insolvency Service can all work from a single, accurate picture of the company’s position.What value should I put on the assets?
Forced-sale and liquidation valuations are the basis — not going-concern figures. Stock with a £100,000 book value may realise far less on a forced sale, and the Statement of Affairs must reflect the realisable amount: market valuation less sale costs, forced-sale value for plant, and estimated collectible (not gross) for debtors.Does the Statement of Affairs have to be sworn?
In bankruptcy and most corporate procedures the SoA requires a statutory declaration or statement of truth. Directors swear personally that the information is true to the best of their knowledge and belief, and false statements are an offence — so accuracy matters.What are the most common errors?
Over-valuing assets, under-listing creditors, misclassifying connected-party loans, and missing hidden items such as personal guarantees, cross-charges and indemnities. Transactions at undervalue and preferences must be disclosed proactively. Incomplete creditor lists are the single most common source of liquidator queries.How should the creditor list be set out?
Every creditor needs: name, address, date the debt was incurred, the consideration (what the debt is for), the amount, any security, any set-off, and whether they are connected. Directors’ loan accounts and other connected unsecured creditors must be separately disclosed.Does this replace my Insolvency Practitioner?
No. The IP role is statutory and cannot be replaced — you work alongside your IP, not against them. What Chris replaces is the surrounding solicitor or paralegal drafting, so directors arrive with a clean draft and the IP reviews, signs off and administers.Arrive at your IP meeting with a clean draft
Draft my Statement of Affairs →One matter · one case folder · a full day of drafting · 7-day guarantee on the standard of the drafts · you remain the litigant in person
See also: DIY company insolvency & rescue — every option compared, and how to cut the insolvency-practitioner fees.
Contains public sector information licensed under the Open Government Licence v3.0.
Would you rather we drafted it for you?
Tell us what has happened and what you need. Every document is quoted case by case, on its size and the time it needs, and the price is agreed with you by email before any work starts. Nothing is charged until you say go.
Once agreed, it comes back to you within one working day (business documents usually within the hour). You read it, check every date and figure, sign it and file it: it stays your document throughout. No need to attach anything now — once we reply, you send your papers by email.
We use your details only to reply to this enquiry. eLitigant CIC is not a law firm and does not give legal advice. You remain the author of your documents.