Wrongful trading is a civil claim brought by a liquidator under section 214 Insolvency Act 1986. Directors found liable can be ordered to personally contribute to the company's assets — piercing the corporate veil. The defence is to take every step a reasonable director would take after the point of no return: take professional advice, consider Administration or CVA, document decisions, restrict further credit-taking, communicate openly with creditors. Failing to act once insolvency is clearly likely is the key trigger.