Does any one know how closely the finances of the sponsor are looked at by the VFS etc. I am asking because I am on the UK Insolvency Register.

The Entry Clearance Officer wont be carrying out credit checks and I doubt very much if they would routinely access the register, but it's up to you to satisfy them that your sponsorship is genuine and affordable.

You will need to provide copies of your bank statements and proof of your income, I don't really know how insolvency works so I don't know if a healthy bank balance would cause you problems with the Insolvency Service.

What I would say is, it would be wise to leave relevant information out of the application.