A qualifying lease
There must be a lease of the premises. Licences and other occupation arrangements require a different recovery route.
Legal guidance · CRAR and insolvency
CRAR and tenant insolvency
Commercial Rent Arrears Recovery can be restricted, stayed or affected when a tenant enters a formal insolvency process. The correct answer depends on the procedure, its effective date, the stage reached in enforcement and ownership of the goods.
No blanket answer
“Insolvent” can describe several legally different procedures.
Timing is decisive
A notice served is not the same as goods already taken under control.
Authority checked first
UK Bailiffs assesses the documents before accepting enforcement.
The practical position
Insolvency changes the enforcement assessment
CRAR is a statutory process for recovering qualifying rent under a lease of wholly commercial premises. It is not automatically available merely because rent is unpaid, and formal insolvency introduces additional restrictions and competing rights.
A landlord should establish the tenant’s precise status before instructing. A rumour of financial difficulty, a proposal for a voluntary arrangement, an administration filing, a winding-up petition, a liquidation and a dissolution are not interchangeable.
CRAR eligibility first
The six checks that still apply
Insolvency does not cure a defective CRAR instruction. The ordinary statutory conditions must be satisfied before the insolvency position is considered.
Wholly commercial use
CRAR is not generally available where any part of the demised premises is lawfully occupied as a dwelling.
Lease and occupation
The lease must remain capable of supporting CRAR and the tenant must still be in occupation of the premises.
Qualifying rent only
Principal rent, VAT and contractual interest may qualify. Service charges, insurance and other sums do not become recoverable merely because the lease calls them rent. See our service-charge arrears guidance .
Seven days’ net unpaid rent
At least seven days’ net unpaid rent must be due both when notice is given and immediately before goods are first taken under control.
Fourteen clear days’ notice
The Notice of Enforcement normally gives at least fourteen clear days, excluding Sundays and bank holidays, unless a court permits a shorter period.
Companies
How corporate insolvency affects CRAR
The terms below describe different legal stages. Each requires a fresh check rather than a standard “yes” or “no”.
Creditors’ voluntary liquidation
A CVL does not create the same statutory moratorium as administration merely because the liquidator has been appointed. That does not make CRAR routine or risk-free.
The commencement date, any prior control of goods, preferential-creditor protection, disclaimer of the lease, ownership or finance of goods, and the liquidator’s dealings with the premises can all affect the position. The liquidator should be identified and the case reviewed before action.
Winding-up petition or compulsory liquidation
Action after presentation of a winding-up petition may be void against a liquidator if a winding-up order follows, unless the court orders otherwise. Once compulsory winding-up is underway, statutory restrictions and the need for court permission become central.
Do not commence or continue CRAR on an assumption that an existing Notice of Enforcement preserves the landlord’s position. Obtain specialist advice on the petition, order and enforcement stage.
Administration
The administration moratorium restricts legal process, including enforcement comparable to taking control of goods. CRAR should not be commenced or continued without the administrator’s consent or the court’s permission.
The fact that notice was served before administration does not by itself permit attendance or sale afterwards. The precise stage reached and any goods already controlled must be reviewed.
Part A1 company moratorium
A standalone moratorium under Part A1 of the Insolvency Act restricts enforcement steps while it is in force. The monitor’s involvement does not replace any court permission required for enforcement.
Confirm the start and end dates and whether the moratorium has been extended, terminated or followed by another insolvency process.
Company voluntary arrangement
A proposed CVA is different from an approved CVA and from a separate moratorium. Once approved, a CVA can bind creditors entitled to vote in relation to debts covered by it.
Review the proposal, approval date, treatment of rent and any moratorium before enforcement. Do not assume that CRAR can continue merely because the tenant company still trades.
Dissolved company
A dissolved company no longer exists as the tenant entity, and company property may have passed as bona vacantia. CRAR should not be used against the dissolved company.
Restoration, disclaimer, possession and the lease position require separate legal consideration. The appropriate route depends on the documents and what remains at the premises.
Individuals and sole traders
Bankruptcy is not an automatic CRAR prohibition
The rules applying to an individual tenant differ materially from corporate liquidation. This is why the debtor’s legal identity must be confirmed.
Bankruptcy
Section 347 of the Insolvency Act 1986 preserves a restricted landlord right to use CRAR in bankruptcy. Broadly, it is limited to rent due for the six months before the bankruptcy order and remains subject to statutory protections, timing rules and the interests of preferential creditors. A bankruptcy order therefore requires specialist assessment; it is not a simple permission to proceed.
Individual voluntary arrangement
Check whether an interim order or moratorium is in force and then examine the approved IVA terms. An approved arrangement may bind the landlord in respect of included debts. The supervisor’s written position and legal advice may be needed before CRAR is considered.
Debt relief order
A debt relief order imposes restrictions on creditor action for qualifying debts while the moratorium applies. Establish whether the commercial rent is included and obtain advice before taking enforcement steps.
Goods and third-party claims
CRAR reaches goods belonging to the tenant. Hire-purchase, leased, financed, charged or third-party goods require careful evidence. Insolvency often increases the likelihood of competing ownership and security claims.
Decision table
What the landlord should do next
This table is a triage guide only. The documents and dates determine the lawful route.
| Situation | Immediate approach | Evidence to obtain |
|---|---|---|
| Financial difficulty only | CRAR may remain available if every ordinary eligibility condition is met. Check for a formal process before notice. | Lease, rent statement, occupancy evidence and current insolvency searches. |
| CVL | Pause for a case-specific review. Contact with the liquidator may be appropriate before enforcement. | Resolution and appointment date, liquidator details, lease status, goods ownership and any earlier control. |
| Winding-up petition or order | Do not commence or continue without specialist confirmation of the court position and any required permission. | Petition date, winding-up order, court details and enforcement chronology. |
| Administration | Obtain administrator consent or court permission before commencing or continuing CRAR. | Appointment documents, administrator contact and written consent or court order. |
| Bankruptcy | Assess the restricted section 347 entitlement, including the six-month rent limit and priority protections. | Bankruptcy order, rent apportionment, trustee details, goods ownership and enforcement dates. |
| Dissolution | Do not use CRAR against the dissolved company. Obtain advice on restoration, possession and remaining property. | Companies House record, dissolution date, lease and evidence about goods at the premises. |
Separate statutory option
Recovering rent from a subtenant
Section 81 of the Tribunals, Courts and Enforcement Act 2007 provides a separate notice procedure where a superior landlord has the right to use CRAR against the immediate tenant.
The notice can require a subtenant to pay rent directly towards the immediate tenant’s arrears. It is not a conventional CRAR attendance against the insolvent tenant’s goods, and the notice has its own statutory content, service and timing requirements.
The immediate tenant’s insolvency does not justify serving the notice automatically. The superior landlord’s CRAR entitlement, the subtenancy, the rent due from the subtenant and any applicable insolvency restriction must all be checked.
Instruction review
Documents we will need
Send the full file at the outset. Missing insolvency dates or ownership evidence can change the advice and prevent attendance.
Lease and rent
- Complete signed lease and variations
- Current rent statement and VAT position
- Breakdown excluding non-qualifying sums
- Evidence the tenant remains in occupation
Insolvency and goods
- Petition, order, resolution or appointment notice
- Office-holder or supervisor details
- Any consent, court order or moratorium document
- Previous enforcement notices and control records
- Known finance, charge or third-party ownership claims
Primary framework
Legislation and official guidance
- Tribunals, Courts and Enforcement Act 2007 — CRAR
- Taking Control of Goods Regulations 2013
- Insolvency Act 1986
- Insolvency Service technical guidance — creditor action and CRAR
Why the date matters
In insolvency law, serving an enforcement notice, taking control of goods and completing a sale are distinct stages. The effect of a petition, order or moratorium can differ at each stage. Preserve a complete dated chronology.
Related commercial landlord guidance
CRAR, possession and alternative recovery routes
Insolvency often changes which remedy can proceed. These pages explain the connected rent-recovery, possession and lease-breach routes.
Common questions
CRAR and insolvency FAQs
Can CRAR be used when a company enters a CVL?
Potentially, but not on the basis of the label alone. A CVL does not create the administration moratorium, yet the commencement date, preferential claims, lease status, ownership of goods and any steps already taken all matter. The instruction should be reviewed before CRAR begins or continues.
Can CRAR continue after a tenant enters administration?
Not without the administrator’s consent or permission of the court. This applies to commencing and continuing the process; an earlier Notice of Enforcement does not by itself override the administration moratorium.
Does a Notice of Enforcement give the landlord priority?
No. Service of notice starts the compliance stage but is not the same as taking control of goods. Insolvency rights depend on the statutory process, the stage reached and the relevant dates.
Can CRAR be used after an individual tenant is made bankrupt?
A restricted right may remain under section 347 of the Insolvency Act 1986, broadly limited to rent due for the six months before the bankruptcy order and subject to other protections. The figures, goods and chronology require specialist assessment.
Can a landlord recover post-insolvency rent as an expense?
That is a separate insolvency question, not an automatic CRAR entitlement. Whether rent is payable as an expense can depend on the office-holder’s use or retention of the premises and the circumstances of the case. Obtain insolvency or property-law advice.
Can the lease be forfeited instead?
Forfeiture is a separate remedy and should not be treated as a substitute without review. Insolvency moratoria may restrict forfeiture, and waiver, peaceable re-entry, relief from forfeiture and the terms of the lease must also be considered. See our commercial lease forfeiture service.
CW
Operational review
Reviewed by Craig Whinray
Craig Whinray is Director of UK Bailiff Services Ltd and a Certificated Enforcement Agent with more than 20 years' frontline enforcement experience.
This CRAR and insolvency guide is informed by UK Bailiffs' operational enforcement experience and the primary statutory framework referenced on the page. It does not replace insolvency or property-law advice where a moratorium, petition, liquidation, ownership dispute or other material issue affects enforcement.
Editorial owner: UK Bailiff Services Ltd · Last reviewed 3 October 2026 · Review following material legal or operational change and at least annually.Send us the insolvency documents before action
UK Bailiffs can review the proposed CRAR instruction, identify missing evidence and confirm whether enforcement can be accepted. Where court permission or specialist legal advice is required, we will say so before attendance.
