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If your solicitor has suddenly gone out of business while handling your claim, it can feel overwhelming and uncertain. You may be wondering whether your case is still valid, what happens to your file, and how you can move things forward.
The good news is that your claim does not disappear. There are clear legal protections in place to ensure your case can continue, and you have the right to choose a new solicitor to take over.
In this guide, we explain exactly what happens when a law firm closes, what it means for your claim, and how you can transfer your case quickly and smoothly.
If you need immediate support, our team can step in and take over your claim with minimal disruption. Click below for free advice today.
What Happens If A Solicitor Goes Out Of Business?
If your solicitor goes out of business while handling your claim, your case does not disappear. You still have the legal right to continue your claim, and there are clear processes in place to protect you.
Law firms may close for several reasons, including insolvency, voluntary closure, or regulatory action by the Solicitors Regulation Authority (SRA). In some cases, the SRA may step in and carry out what is known as an intervention, taking control of the firm to protect clients.
When this happens, your client file will usually be:
Collected and secured by an SRA-appointed intervention agent, or
Transferred to another firm of solicitors
Your case remains active, and you are entitled to choose how it proceeds. Legal services regulation in England and Wales is designed to ensure that clients are not left without support when a firm closes.
Will My Claim Be Affected?
This is often the biggest worry, but in most cases, your claim itself remains fully valid. However, there are a few important points to be aware of:
- Your legal rights are unchanged – your claim still stands
- Limitation periods still apply – deadlines do not pause because your solicitor has closed
- There may be some delays while your file is located or transferred
Potential risks that need to be managed quickly:
- Missing or incomplete documents
- Breakdowns in communication
- Uncertainty around funding arrangements, such as No Win No Fee agreements
The key is acting promptly. The sooner your case is reviewed by a new solicitor, the lower the risk of disruption.
Can I Choose A New Solicitor?
Yes — you have full freedom to choose a new solicitor at any stage.
In fact, many clients decide to switch to a firm that:
Offers clearer communication
Has specialist expertise in their type of claim
Can progress the case more efficiently
Changing solicitors is a straightforward process, and in most cases, your new solicitor will handle everything on your behalf. If you’re looking to speak with a new lawyer, reach out to us today. We can provide free advice and give you more detailed information on your situation. Tap below to get started.
How To Transfer Your Claim To A New Solicitor
Transferring your claim is usually quick and simple. A good solicitor will manage the process for you with minimal effort required on your part.
Confirm Status
Check whether the firm has closed, entered administration, or been subject to SRA intervention.
Locate Case File
Your file may be held by an agent or another firm. Your new solicitor can help track this down.
Choose New Solicitor
Select a firm with experience in transferred cases and your specific type of claim.
Sign Authority
Sign a simple authority form allowing your new legal team to request your case file.
New Team Takes Over
Your new team reviews your case, continues the claim, and handles all communication.
We Can Take Over Your Claim Quickly And Smoothly
If your solicitor has closed down, we can step in immediately to ensure your claim continues without unnecessary delay. We regularly take over cases involving:
Personal Injury Claims
Medical Negligence Claims
Criminal Injury Claims
Data Breach Claims
What Happens To No Win No Fee Agreements?
If your previous solicitor was acting under a No Win No Fee agreement, this is formally known as a Conditional Fee Agreement (CFA).
When you switch solicitors:
You will usually sign a new CFA with your new firm
There are no upfront legal fees to pay
Success fees remain capped under UK law
Your new solicitor will clearly explain any funding arrangements before taking over your case, so you know exactly where you stand.
No — you do not lose your right to compensation simply because your solicitor has gone out of business. Your claim remains valid.
The only real risk comes from:
- Delays in progressing your case
- Missing important deadlines
This is why it is so important to act quickly and ensure your case is picked up by a new solicitor as soon as possible.
If the Solicitors Regulation Authority has intervened in your solicitor’s firm, it means they have taken control to protect clients and their interests.
In this situation:
- Your files are secured by an intervention agent
- The firm is no longer allowed to operate
- You may need to request your file or appoint a new solicitor to retrieve it
A new solicitor can contact the intervention agent on your behalf, obtain your documents, and take over your case without delay.
Even if your solicitor has closed, legal time limits still apply. For most personal injury claims, you have 3 years from the date of the incident or knowledge of injury to make a claim.
There are some exceptions:
- Claims involving children
- Cases involving reduced mental capacity
Delays caused by a firm closing can put your claim at risk if action is not taken quickly. Acting early helps protect your right to compensation.