You have decided that you need the help of an Insolvency Practitioner, so which one should you appoint?
The Insolvency profession is a specialist one, but there are still plenty of firms for you to choose from. For most people, dealing with an Insolvency Practitioner is something they are only likely to do once in their lifetime. So, we thought it would be helpful to give you some guidance on which Insolvency Practitioner to use.
(Accountants and other business advisers are likely to have more experience in dealing with Insolvency Practitioners. However, they should still look for the right Insolvency Practitioner for their clients.)
Which Insolvency Practitioner should you choose?
There are some key things to consider when deciding which Insolvency Practitioner you should appoint to help you.
- Do they offer free initial advice?
Most do, so you should take advantage of it.
- Are they experienced in helping people and companies like you and in your situation?
Your Insolvency Practitioner should give you the best advice for your situation. So you should choose a firm that has the experience and expertise of dealing with similar situations.
- Crucially, will they guide you through the entire process to ensure that you are fulfilling all your legal obligations?
You need to appoint a firm that will make sure that you fulfil your legal obligations so that you will not have to be ‘looking over your shoulder’ since you can be assured that everything has been done correctly and legally.
- Are their fees reasonable?
Insolvency Practitioners are not charities, so they do need to make money. That said, the fees they charge should be relative to the complexity of the matter. Some firms charge a “minimum fee” which is in excess of what you should be paying for your case. However, there a firm that offer low fees and professional service. So it is worth looking around.
- Are they nice people to deal with?
Dealing with an Insolvency Practitioner can be quite daunting for some people, and potentially stressful. So you should feel comfortable with the people who you are dealing with and appoint a firm that is professional and friendly.
- Will they tell you “how it is” – even if you don’t necessarily want to hear it?
A good firm of Insolvency Practitioners will tell you what needs to be done. Sometimes you may not want to hear what they are telling you. However, they should guide you to do what is right and proper – and not to just do what you want them to do.
- Do they make it easy to deal with them?
Many firms offer an on-line service, reducing the need for having to have face-to-face meetings. Where a meeting does need to be held, the Insolvency Practitioner should be flexible in terms of finding a mutually convenient place for you to meet.
- If your company is going through an insolvent liquidation (a Creditors’ Voluntary Liquidation), can the Insolvency Practitioner help you to raise funds to restart a business?
A good firm of Insolvency Practitioners will be able to put you in touch with specialist firms who are looking for opportunities to fund ‘restart businesses’.
Things to beware of
As dealing with an insolvency matter is ‘unchartered water’ for many people, we thought it would also be useful to provide you with some guidance on things to beware of.
- Are you dealing with an intermediary?
If you are, you’ll be paying their fees as well as the fees of the Insolvency Practitioner who will (legally) need to be appointed. So you would be better off going straight to an Insolvency Practitioner and keeping your costs down.
- For an insolvent company, has an adviser said that they will look after just the interests of the directors of the company and that you don’t need to worry about the creditors of the company (i.e. the people and companies who are owed money)?
If so, you should avoid them as they are acting outside the law.
What to do next?
Clarke Bell are Licensed Insolvency Practitioners and can give you a professional, nationwide service at a very affordable cost.
For more information and free initial advice, call us on 0161 907 4044 or email [email protected]