There is no getting away from the fact that sometimes you, or your business, might fall on hard times. This can be for many reasons, either because you misjudged something, circumstances beyond your control or a trickle down effect of the current state of the economy as a whole. What is important is how you deal with the situation once you find yourself in some form of financial hardship. If you are going to become insolvent then you will want to speak to an insolvency practitioner that is going to be able to help you. On the other hand, it may be the case that you need an insolvency practitioner for a different reason. They do not need to come on board simply because a business is struggling, it may be the case that you are ready to close your business and are looking for assistance in doing so. So, what should you look for when hiring an insolvency practitioner?
Why Would You Need a Practitioner?
Regardless of whether you are looking to obtain the services of an insolvency practitioner as a means to close your company (which is solvent) or you need help turning an insolvent company around, you are going to need to be careful with who you are choosing as your practitioner. There are a number of different things that you need to consider when it comes to choosing the right insolvency practitioner.
They are going to be responsible for analysing everything that is happening with your company and your company’s affairs in order to properly determine whether there is a problem or what the next steps to close a solvent company will be. They are going to be able to provide you with expert advice and give guidance on how you should effectively move forward, whether that’s closing a business or trying to rescue it. Essentially, the insolvency practitioner will have a huge impact on the process and as such, it’s crucial you are getting the right people on board.
As such, you need to make sure that you are setting time aside to research different practitioners and take your time when choosing who you are keen to have on your side.
What Is the Role of an Insolvency Practitioner?
As per the Insolvency Act 1986, here in the UK, insolvency practitioners are authorised to work with companies and individuals who are considering closing or are in need of potential rescue. There are a number of different roles that an insolvency practitioner can have when carrying out these tasks, such as coordinating and overseeing the potential closure of a business, communicating between various parties and investigating the conduct of different businesses. All in all, the encompassing role of an insolvency practitioner is to work with companies in order to get the best outcome possible for them and their prospective creditors.
What Should You Look Out for When Choosing an Insolvency Practitioner?
When you are looking for an insolvency practitioner, there are a number of different things you need to look out for which will make sure the process is as straightforward as possible. You should make sure that the insolvency practitioner you end up choosing has a clear understanding of what your situation is and your financial problems. They should also be able to communicate and think clearly so that they can devise the best and most efficient route forward. Some of the key factors that you should look out for include:
- Whether They Are Licensed or Not
When you hire an insolvency practitioner, they need to be licensed in order to practice. As such, when you are looking for somebody to work with, you need to make sure that you are checking they are fully licensed and subsequently have permission to take on your case and work on your behalf. There are a lot of tasks which are involved in this kind of process and only insolvency practitioners have permission to perform them. If you look for anybody else then you are just going to be wasting both your and their time. There are a lot of companies who will offer you advice but then won’t actually be qualified to do so, it’s important that you steer clear of them. If you want to make sure that somebody is licensed and as such is able to provide advice, there are several professional bodies to keep an eye out for. These include:
- Insolvency of Practitioners Association
- Institute of Chartered Accountants of England and Wales
- Institute of Chartered Accountants in Scotland
- Institute of Chartered Accountants in Ireland
- What Kind of Experience Do They Have?
You want to make sure you are putting your trust in someone who has experience in your kind of field and as such, you should understand the kind of experience that they have, what businesses they have worked with and what industries they have operated in. This will ensure that you know whatever team you end up working with are going to have the tools necessary to properly help you. When you are going through your shortlist and picking an insolvency practitioner, be sure to ask what kind of experience they have, ask for case studies and then see if the situation is similar to yours. This is the best way that you can check you are working with the best people.
Are You Looking for the Right Insolvency Practitioner?
If you currently own a company that has found itself on hard times or you own a company that you are simply looking to close, you are going to need the help of insolvency practitioners. At Simple Liquidation, our team of licensed experts have experience with a variety of cases and as such are in the best position possible to help you. We will be able to sit down with you, discuss what your business does, and what your situation is and then using that information will be able to provide solid advice on the best way forward. If you have any questions or require any further information then do not hesitate to get in touch.