Bankruptcy and Liquidation
A core ARB objective is to support architects through regulation and we have staff on hand to offer advice and guidance on a range of topics. One of the more common queries we receive from architects is what to do if you find yourself in financial difficulty – whether that be personal or professional.
We appreciate financial instability can be extremely stressful but the good news is that advice and support is available from a number of sources. It’s best to take action as early as you can to give you time to explore the range of options available to you.
If you are experiencing personal financial difficulties, a great source of useful information on Debt and Money is provided by Citizens Advice. Information from Citizens Advice can vary depending on where you live so be sure to select advice tailored to your area of the UK.
If you are facing professional financial difficulties you can reach out to an architectural professional body, the Architects Benevolent Society or the Insolvency Service. The Architects Benevolent Society provides support to people in times of crisis to help them to get back on their feet. Their support is free and eligibility doesn’t depend on being a member of any professional body but is instead based on your work experience in the UK. The Insolvency Service supports those in financial distress and, through their enquiry line, provides information on insolvency and sources of further advice such as options for dealing with debt.
We would recommend seeking professional advice from an accountant before deciding on the most appropriate route forward. It will be useful to take advice from your insurance broker/provider or an insolvency practitioner to ensure your continued cover, as the availability of ongoing or run-off professional indemnity insurance can vary according to the particular situation.
You can rest assured that neither bankruptcy nor being a director of an insolvent company will automatically lead to disciplinary action or the removal of your name from the Register. Just remember you’ll need to report the circumstances to ARB within 28 days if you find yourself in either of these circumstances or have made arrangements with creditors. Further regulatory action would only be considered should it appear there has been wilful disregarded of responsibilities or actions without integrity. To avoid complications with your current and former clients, we also recommended acting with their interests in mind by informing them of your bankruptcy or liquidation, and how it might affect them.
We hope this information is useful but feel free to contact us by email or by phone for further advice and we’ll be happy to help (professionalstandards@arb.org.uk / 020 7580 5861).
