|What to Look For When Choosing an Insolvency Practitioner|
Hundreds of companies turn to insolvency practitioners each day to help them with their debt solutions. These are licensed and authorised practitioners who focus on helping insolvent companies, partnerships and individuals.
Most insolvency practitioners are accountants who specialise in the insolvency sector. They must have passed their insolvency exams, abide by the law and are monitored to ensure they are sticking to the guidelines and regulations.
The best way to find an insolvency practitioner if you feel your company is in serious financial difficulty and you need advice and help on where to turn next, then you will want to rely on referrals. You may have friends or family members who have been through a similar experience with their own business or you may want to speak to your accountant and see who they recommend to help you through the next stage of your business finances.
Many business directors aren't ready for their financial situation to be known publicly, so speaking to other companies, directors or even their own accountant is not an option. In these situations you can take advantage of the internet. Here you will find a host of information on insolvency, the options available and companies providing a service, along with free debt advice, so you have some idea on where to turn next and what to expect.
Ensure when looking at insolvency practitioners that you choose a company that offers years of knowledge and experience ideally in your sector as this may help. They should be able to offer you advice, recommendations and support every step of the way initially. Ideally they should have a solid reputation in the country or area and have already helped hundreds of companies manage their debt effectively. This can provide you with much needed peace of mind. Be aware however that if you are considering company liquidation you should be very careful what is discussed pre-liquidation. An insolvency practitioner once engaged must act for the company creditors by law not the directors. Any conversations you have are not classed as ‘privileged' in law and evidence may be used against you in a very real sense.
Of course insolvency practitioners don't come free of charge and while their initial advice may be free, at some point someone will pay for the services they provide. This means that you will want to review the company in detail, ensuring that they can provide you with the services they say they can moving forward. The team may recommend liquidation, they may suggest you consider a debt management plan or they may have another idea to help you manage your debt effectively.
This is your chance to learn as much about the insolvency practitioner as possible. Do a search online and go through the online forums and independent review sites to find honest and reliable customer feedback. Most companies will provide reviews on their website, don't rely solely on these, especially if there only a handful, as you can imagine, a company will only display the positive reviews to help draw customers to them. Ask to speak to past clients. This is the simplest method to ensure you get what you expect.
After going through the reviews, you will want to identify the type and level of customer support you can expect to receive. Don't only contact the company via email. Rather pick up the phone and speak to a person on the other side of the phone. Speaking to someone helps you determine their professionalism and their level of customer service. You can also have the opportunity to ask questions and get answers quickly and effectively.
Finally, before you choose which insolvency practitioner is the right choice for your business moving forward, ensure you fully understand the process that they have recommended to you. You want to know how it works, the effects on you and the business and how long the situation will take to resolve. Remember if you are seeking liquidation once you engage the insolvency practitioner there is no easy way of dismissing them as liquidator.