Choosing an insolvency practitioner for your company is a very important decision. You may be looking for an insolvency practitioner in order to close your company or be seeking help to turn an insolvent company around with the aim of restoring it to profitability.
Your choice of insolvency practitioner will determine how effectively you may be able to achieve the desired outcomes for the company. It will also affect your overall experience of the process in achieving that desired outcome.
What do Insolvency Practitioners do?
Insolvency practitioners can have a number of different roles but they all involve working with insolvent companies. They may be involved in structuring and overseeing the closure of your company to achieve the best outcome possible for the company’s creditors. Alternatively, they may be involved in restructuring the company or negotiating agreements with its creditors so that it can work towards profitability again.
Ultimately, insolvency practitioners work with insolvent companies to achieve the best possible outcome given the specific circumstances.
Finding an Insolvency Practitioner
Before you can choose an insolvency practitioner, you will need to find one. The government’s “Find an Insolvency Practitioner” page is a useful tool. It allows you to search for insolvency practitioners by name, town/city or county.
When looking for an insolvency practitioner in the UK, you can also consider the following steps:
- Understand Your Situation: Know the type of insolvency process you need (e.g., company liquidation, debt restructuring) to find a specialist in that area.
- Use Government Resources: The UK government’s website provides a tool to find licensed insolvency practitioners by location and specialty.
- Get Professional Referrals: Ask accountants, lawyers, or financial advisors for recommendations based on their experience with insolvency practitioners.
- Consult Professional Bodies: Use directories from organizations like the Insolvency Practitioners Association or the Institute of Chartered Accountants of Scotland to find qualified professionals.
- Do Your Research: After shortlisting potential practitioners, read reviews, check their websites, and verify their credentials to gauge their track record and reputation.
- Arrange Meetings: Schedule consultations to assess each practitioner’s communication style, understanding of your situation, and approach.
- Evaluate Experience and Expertise: Choose someone with relevant experience and expertise, particularly in handling cases similar to yours.
- Check Communication and Rapport: Ensure you’re comfortable with the practitioner’s communication style and feel they understand your needs.
- Discuss Fees: Understand the costs involved and get a clear fee structure to avoid surprises.
- Consider Legal Advice: If unsure, seek advice from a solicitor specializing in insolvency to guide your choice.
Things to Consider When Choosing Your Insolvency Practitioner
Are They Licensed?
Insolvency practitioners must be licensed in order to practice. There are a number of Recognised Professional Bodies (RPBs) who can license insolvency practitioners. These are as follows:
- Insolvency Practitioners Association
- Institute of Chartered Accountants of England and Wales
- Institute of Chartered Accountants in Scotland
- Institute of Chartered Accountants in Ireland
It is really important that the insolvency practitioner is licensed as only licensed practitioners are legally allowed to undertake many of the functions required in insolvency proceedings such as acting as the, Liquidator, administrator of a company or supervisors of a Company Voluntary Arrangement.
You should have an initial conversation or meeting with any potential insolvency practitioner that you are considering appointing. During this conversation, the insolvency practitioner should ask for clarification about the particulars of the company’s situation and talk about possible courses of action that may be appropriate in relation to that company.
Don’t be afraid to ask how much experience and practice they have in dealing with similar situations or with similar courses of action. If you don’t think they are sufficiently experienced to deal with the matter, consider carefully whether you think it is appropriate to engage them.
Whatever course of action you may take in relation to the company, it’s likely to be quite a stressful and difficult time. It’s very important that you trust the insolvency practitioner that you appoint as it may be that you are required to work with them for a long period of time. Insolvency practitioners are a number of fiduciary duties, such as to conduct themselves with competence and integrity but you should be comfortable with them before you engage them.
You should contact a few insolvency practitioners to ask for an estimate of costs for the course of action you are seeking for the company. Many, like ourseleves, will offer an introductory, no obligation consultation free of charge. This should give you a good idea of costs and fees. Be aware though that the cheapest option is not always the best.
Looking for an Insolvency Practitioner?
Here at AABRS, we have a number of licensed insolvency practitioners who can help you at this difficult and stressful time. If you think you might need the help and advice of an insolvency practitioner, we offer a no-obligation initial consultation.