Pursuing this at a personal level is the only way to make them think twice about mismanaging a company.
There are all sorts of reasons companies go bust...quite often it is because someone else has gone bust first owing them lots of money.
The laws in the UK (and most other industrial countries) are designed as much as anything to promote and protect commerce...hence the concept of limited liability.
Anybody can always make a personal appeal to the ex-owners to pay up out of their remaining assets, sometimes, but very rarely, they may do so.
I'm afraid chasing them with a solicitor is likely to be a case of throwing good money after bad, even if its an insurance company's money (not sure I'm convinced that you can be covered for a process that is likely to be futile??????????)
When the last Scottish flying school went bust, up north, an overseas student lost 9 times the amount in question here. Which is why I took umbrage some time back when a poster commented that all flying schools are the same.
At the risk of getting another b***king...all flying schools are not the same and if you think they are go check companies house for the financial records of all the flying schools in Scotland.
Better still, pay £10 and you can get a complete financial breakdown of all the companies involved. At least one flying school in Scotland has a five star credit rating and is ratified to deliver public sector contracts. As ANY businessman/woman knows, to deliver a public sector contract you have to meet a host of financial stress tests.
PS
I have absolutely no vested interest in any flying school whatsoever. I just get the hump when the public are mislead, because the outcome always ends in tears.