Petition · Department for Business, Innovation, Science and Trade
Stricter regulation of liquidation processes for debt avoidance
Closed
50 signatures
What the petition asks
We urge the Government to tighten rules preventing directors from repeatedly liquidating businesses to avoid debts and then starting new ones. This “phoenixing” practice may leave customers, suppliers, and employees out of pocket while directors escape financial responsibility
We want the Government to act because repeated business liquidations allow directors to escape debts while harming customers, suppliers, and employees. We propose restricting directors with multiple failed businesses from starting new ones, making them personally liable for certain debts, and ensuring fairer asset distribution to protect small creditors.
Timeline
| 6 May 2025 | Petition opened for signatures |
| 6 Nov 2025 | Closed to new signatures |
Key facts
Signatures
50
Status
Closed
Department
Department for Business, Innovation, Science and Trade
Opened
6 May 2025
Closed
6 Nov 2025
Follow this petition
Sign in to get an email when the government responds, a debate is scheduled or held, or the petition closes.
Source: the official petition page. Last checked 19 Aug 2026.