To instruct an insolvency practitioner is to appoint them to act on your behalf in an informal or formal insolvency procedure (i.e. administration, CVA, voluntary liquidation, etc.). Although all licensed insolvency practitioners are legally obligated to act in the best interest of your company and its creditors, all IPs are not the same because they charge varying fees and have different policies.
First and foremost you want to deal with an insolvency practitioner that is attentive and considerate about your needs and preferences. They should be easy to make contact with any day of the week, and should offer quick and comprehensive responses to your inquiries. Furthermore, they should be proficient in explaining things in detail and answering questions in depth.
While it can seem intuitive to go with the insolvency practitioner with the cheapest fees, considering you're already having business trouble, choosing a cheaper service may put you in a worse position in the long run, as without proper guidance you could make a mistake that leads to allegations of wrongful or fraudulent trading. Such accusations could lead to steep fines and penalties, including a directors' disqualification ban that could forbid you from acting as the director of any limited company in the UK for a period of up to 15 years.
Examine the company's testimonials and reviews online. Ask people in your community if they have heard of them or done business with them. Look up their Better Business Bureau profile and social networking profiles. Any good firm of insolvency practitioners will have some sort of feedback for you to rely on.
Does the insolvency practitioner have a professional website with plenty of helpful informational pages and guides to help you out? Chances are an insolvency firm is trustworthy when their website is showing up in the majority of Google searches for insolvency-related keywords. A strong web presence shows that the firm is knowledgeable and up-to-date on all matters related to business recovery and winding up.
During your initial consultation with a prospective insolvency practitioner you'll want to describe your situation and then give them the opportunity to explain what needs to be done and how the procedure will unfold. This short summary of what you should expect will give you an idea of how knowledgeable and responsive the insolvency practitioner is.
If you're looking for a firm of experienced insolvency practitioners to assist you in matters related to business recovery we fit the bill well. Our team has helped company directors minimise the stress of managing the affairs of a struggling company. Call us on 0800 644 6080 for free comprehensive consultation, or send us a message with your questions.
4th December 2018
The number of independent retailers who closed down outlets during the first half of this year reached a record high level for any comparable period.Read More