What is the role of an Insolvency Practitioner?
It may be reassuring to know that all Insolvency Practitioners will follow and comply with the statutory regulations of the Insolvency Act 1986 and the Insolvency Rules 1986 throughout their work.
Depending on the circumstances, an insolvency practitioner is able to perform a number of functions across a variety of different scenarios. In general, Insolvency Practitioners will have a great amount of experience in dealing with businesses who are facing financial difficulty and with corporate insolvencies widely expected to increase, now may be a good time to review your financial position.
If your company is facing financial difficulty, it is important to seek professional advice from a licenced Insolvency Practitioner at the earliest possible stage. They can help you assess the financial position and advise on how to move forward.
What roles can an Insolvency Practitioner undertake?
The role of an Insolvency Practitioner may take the form any one of the following:
- Administrator
- Liquidator
- Supervisor in a Voluntary Arrangement
Recent years have been tough on UK businesses, and with continued challenges it is important to be aware that financial distress can happen to any business, no matter its size.
What is a Licensed Insolvency Practitioner?
An Insolvency Practitioner is a licenced professional who is best placed to help businesses facing financial difficulties. Insolvency Practitioners are experts in insolvency law and associated legislation and have a detailed understanding of the different procedures that can be used to help businesses recover from financial difficulty.
Insolvency practitioners must be properly licensed to undertake this type of work. Being a licensed insolvency practitioner means being a member of a Recognised Professional Body (RPB) which has issued a license, authorising that person to act.
When should I contact an Insolvency Practitioner?
Business owners and directors can sometimes find themselves embedded in the day-to-day tasks of ensuring a business continues to operate. It can therefore be difficult to decide on whether to carry on, or when to seek professional advice. If your business is showing any sign of financial strain, it is always best to seek advice at the earliest possible stage. This is likely to mean that there will be more options available to the company than if the position deteriorates further.
How can an Insolvency Practitioner Help my Business?
An Insolvency Practitioner can help your business in many ways, by:
- Reviewing the financial position of the company and assessing the options available
- Preparing financial information and other documents for formal insolvency solutions
- Preparing financial information and other documents for informal payment plans
- Communicating with creditors and employees on behalf of the company
- Resolving disputes, whether trading disputes, or shareholder disputes
Where a formal insolvency solution is not deemed to be appropriate (such as Administration, Company Voluntary Arrangement, or Liquidation) an Insolvency Practitioner can also assist in sourcing funding. By working closely with banks, building societies and other lenders, we can introduce you to lenders who can help your business maintain a healthy cash flow.
Help from Insolvency Practitioners
Keywood Group is a firm of Licenced Insolvency Practitioners, and our team has extensive experience in advising business on their options (whether formal or informal) and dealing with company closure.
Our Insolvency Practitioner is fully licenced and regulated by The Insolvency Practitioners Association (IPA). Our team is based at our office in Birmingham but we operate nationwide and offer face-to-face consultations notwithstanding your location.
We are committed to providing you with clear advice from the outset and always ensure that you make decisions relating to your company based on full possession of the facts, and the implications of each option. If you have any concerns regarding the viability of your business then please contact us today for a no obligation chat about options available.
