Thursday, November 07, 2019

When Do I Know It’s Time to Contact an Insolvency Practitioner?

When Do I Know It’s Time to Contact an Insolvency Practitioner?

An insolvency practitioner can provide essential support, guidance and advice when you are facing financial issues, whether as a business or an individual.

However, what might not be clear, is when the right time is to contact an insolvency practitioner.

It is important to understand that an insolvency practitioner is not simply a financial emergency service, that you call in only when all other avenues appear closed to you.

The common misconception surrounding this service is that is only applies as a last resort.

Insolvency Practitioner Advice Has Value

The role of an insolvency practitioner includes giving expert advice. This advice can be helpful at various stages, not just when a company is considering liquidation, or an individual is facing difficult debts.

Advice has value.

Consequently, there are certain situations where an insolvency practitioner can offer advice where companies are still solvent.

For example, where a business is facing temporary cash flow problems, or where a creditor is threatening it with legal action, an insolvency practitioner may provide professional advice which can make a difference to the outcome.

Serious financial situations do not all need to end in liquidation.

The lesson is to act earlier rather than later.

A proactive, approach to seeking professional advice early on can mean a wider range of potential options to help a business find the best possible solution given the circumstances.

These options may include:

  • Company restructure
  • Sale of assets to help bring in cash
  • Selling the business as a going concern.

These may ensure the business’s survival. However, even if these options are not explorable, then having the support of an insolvency practitioner is still essential if the business goes into voluntary liquidation.

Issues can suddenly arise that put you on the back foot financially, such as an unexpected bill, or a key customer or supplier themselves becoming insolvent.

Other issues can affect businesses, such as market downturns or wider economic changes.

Practical Support from an Insolvency Practitioner

Whatever solution a business or individual requires, whether it is some form of corporate recovery or business insolvency, or a personal insolvency, the insolvency practitioner is there to provide practical support and help.

An insolvency practitioner can negotiate with creditors professionally, to help restore confidence in the company.

They can also intervene on a client’s behalf in dealing with HMRC and navigating the often complex paths of rules and regulations.

A Question of Timing and Protection

Should a company need to go into liquidation, the question of timing is crucial. It can make a huge difference to directors, employees and creditors.

An insolvency practitioner will look at this strategically. The swifter the action, the more likely it is that there can be a more positive outcome.

They can provide advice on the best time to wind down a business, which will work for the individuals involved but also help satisfy creditors by maximising the available funds for them.

An insolvency practitioner is there to help protect you and your business when you face financial issues, obstacles and difficulties.

You do not need to wait until these things seem too colossal or overwhelming. If something financial is gnawing away at you, get in touch now.

Irwin Insolvency have been established for many years as insolvency practitioners, delivering expert advice on both personal and corporate insolvency. For more information, call 0800 009 3173 or send an email to mail@irwinuk.net.

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