Realising Company Records in Insolvency (UK)

At a glance

At a glance
Liquidator's power	Sell any of the company's property: IA 1986 Sch 4 para 6 (via s.165 or s.167)
Administrator's power	Sell or otherwise dispose of property: IA 1986 Sch B1 para 60 and Sch 1 para 2
Microsoft 365 (business)	Expired 30 days, then Disabled 90 days (admins only), then deleted
Google Workspace	Suspended if unpaid for 30 days; may be cancelled after 60 days suspended
Slack, if downgraded to free	Only 90 days visible; anything over a year old is deleted
Our commission	20% / 15% / 10% of realisations, subject to any approval needed from creditors or a committee. No sale, no fee
Payments to IPs for introductions	Never offered
Buyers' referral rewards on an estate	Disclosed to creditors and paid to the estate in full

Can an office-holder sell or license the company's records?

Yes, as part of realising the company's property. A liquidator may exercise the powers in Parts 1 to 3 of Schedule 4 to the Insolvency Act 1986 (section 165 in a voluntary winding up, section 167 in a winding up by the court), including the power to sell any of the company's property by public auction or private contract (Schedule 4, paragraph 6). An administrator has the powers in Schedule 1 (Schedule B1, paragraph 60), including the power to sell or otherwise dispose of the company's property (Schedule 1, paragraph 2).

In practice, records are usually realised by licensing a de-identified copy rather than selling the systems themselves. In administration, a disposal to a connected person can be subject to the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021.

Who is responsible for the personal data in the records?

The archive will hold personal data about staff, customers and suppliers, so data protection law applies to anything done with it. Settle early who acts as controller for the records during the appointment, and record it in the data protection impact assessment. Where it isn't clear, take advice before any processing starts.

Licensing for AI training is a new purpose, so the assessment should cover whether it's compatible with the purposes the records were originally held for (UK GDPR Article 8A), and what the people concerned are told.

How long before the data disappears?

Each platform has its own clock, and it usually starts when payments stop, not when you're appointed. These are the providers' own published terms, checked on 30 October 2026:

Microsoft 365 for business. After the subscription ends it is Expired for 30 days (normal access), then Disabled for 90 days (users locked out; admins can still access and back up data), then deleted. A monthly subscription cancelled within the cancellation window skips straight to Disabled, and Microsoft says data left behind might be deleted after 90 days and will be deleted no later than 180 days after cancellation. Enterprise and volume-licensing terms differ.
Google Workspace. If a monthly payment fails and isn't fixed within 30 days, the service is suspended. Google warns that subscriptions suspended for more than 60 days might be cancelled, with loss of user data. After cancellation, users' Workspace data is deleted and can't be restored.
Slack. A paid workspace that drops to the free plan shows only the most recent 90 days of messages and files, and Slack deletes anything more than a year old on a rolling basis. Deleted history isn't restored by upgrading again. Full exports of private channels and messages also depend on the plan.

Other systems, such as ticketing, CRM, code hosting and on-premises servers, have their own terms. Check each one's billing status on day one.

What should happen in the first week?

Don't wipe servers or laptops, and stop any routine device recycling.
Find out where each subscription is in its lifecycle, and keep the core ones paid for a short period.
Secure the admin accounts: change passwords, record who has access, and remove leavers' access.
List the systems: email, chat, tickets, CRM, code, shared documents, and where each is hosted.
Note anything that must never be licensed, such as HR, health, privileged or customer-confidential material.
Get an early view on whether the records are worth realising before spending estate money keeping them.

Does it work differently by appointment type?

Administration. The administrator acts under Schedule B1 and Schedule 1. Records may be realised separately or alongside a sale of the business; check the connected-person rules if the buyer is connected.
Creditors' voluntary liquidation. The liquidator acts under section 165 and Schedule 4. Time is usually the main risk, because systems are often switched off before or around the appointment.
Compulsory liquidation. The liquidator, who may be the official receiver, acts under section 167 and Schedule 4.
Pre-packs. If the business is sold on appointment, settle at the outset whether the records go with it or are kept back for the estate.

None of this is legal advice for a particular estate. Each appointment needs its own assessment.

Why don't we pay insolvency practitioners for introductions?

The Insolvency Code of Ethics treats payments for introductions as a threat to an office-holder's objectivity. An insolvency practitioner, their firm or an associate must not make or offer any payment or commission for the introduction of an insolvency appointment, and referral fees received during an appointment must go into the estate and be disclosed to creditors.

We never offer IPs or their firms a referral share, or anything for an introduction.
We don't ask for exclusivity. An office-holder stays free to use any route.
If an AI buyer offers a referral reward on an estate's sale, it's disclosed to creditors and paid to the estate in full.
Our commission is on realisations only, 20% of the first £100,000, 15% from £100,000 to £500,000 and 10% above. It's disclosed to creditors, subject to any approval needed from creditors or a committee. No sale, no fee.

Frequently asked questions

Can a liquidator sell a company's emails and chat history?

A liquidator can sell any of the company's property under Schedule 4, paragraph 6 of the Insolvency Act 1986. Records containing personal data also need a data protection assessment, and in practice they're usually realised by licensing a de-identified copy rather than handing over the systems.

How long does Microsoft keep data after a business subscription ends?

Microsoft's published lifecycle for business subscriptions is 30 days Expired and 90 days Disabled before deletion, with only admins able to access data while Disabled. Some subscription types differ, so check the tenant's own status.

What happens to Slack history if the workspace stops paying?

If it drops to the free plan, only the last 90 days are visible, and Slack deletes messages and files more than a year old on a rolling basis. Upgrading again doesn't bring back deleted history.

Do you pay referral fees to insolvency practitioners?

No. We never offer IPs or their firms anything for an introduction, and any buyer's referral reward on an estate's sale is disclosed to creditors and paid to the estate in full.

Guide for insolvency practitioners →Insolvency estates →UK Data Estates Bulletin →Closing company data →

Sources

Last reviewed 30 Oct 2026 by Record Yield. Provider terms and legislation were read on that date and can change. This page is general information, not legal advice.

Realising a company's records in insolvency: a guide for UK office-holders