Closure may not be the only course of action; in some cases, with the guidance of a licensed insolvency practitioner, it may be possible to rescue your company and turnaround your fortunes. An IP will help you find the available options to ensure your creditors are protected and that you comply with your legal duties. In addition to explaining your options and what they mean for your company and your clients, an insolvency practitioner will then help you navigate your way through the appropriate processes.
What to look for in a local insolvency practitioner
When you are looking for an insolvency practitioner to help you, there are a number of different factors and credentials to consider.
They are a Licensed IP
The first thing to check when you are looking for an insolvency practitioner is to check their qualifications and credentials, as only licensed IPs are legally authorised to place your company into formal insolvency procedures. Whilst anyone can call themself an insolvency adviser, in order to be an insolvency practitioner, they must be licensed. A licensed insolvency practitioner has completed rigorous exams, as set by professional bodies recognised by the Insolvency Service.
There are a number of recognised professional bodies who can license insolvency practitioners, including the Insolvency Practitioners Association (IPA), Institute of Chartered Accountants of England and Wales (ICAEW), Institute of Chartered Accountants in Scotland (ICAS) and Institute of Chartered Accountants in Ireland.
Licensed insolvency practitioners that you can trust will always be happy to provide you with their license number and documented evidence of their experience.
They are local
While it is not essential that an IP be local, it is certainly an advantage to find an insolvency practitioner in your area. For example, face-to-face meetings are useful for creating a close working relationship and a greater understanding between you and your IP. Whilst it is certainly possible to conduct all meetings remotely, it certainly helps an insolvency practitioner to get a feel for the challenges you are facing in your area if they are knowledgeable about the region.
They offer a free of charge initial consultation
If an insolvency practitioner offers a no obligation, free of charge consultation, this should give you an opportunity to find out more about them, how they can help you and the fees that will be involved, without having to worry about payment before you are sure they can assist you. Remember, when fees are discussed, the cheapest IP is not always the best option.
They are experienced
Before making any important decisions, it is always important to arrange an initial consultation with an IP you are considering appointing. This provides the perfect opportunity to ask how much experience they have of dealing with similar cases to yours, but also to check on the questions that they ask you to get a clearer view of your situation. If you don’t feel that they have sufficient experience in dealing with cases like yours, then you should consider talking to other local insolvency practitioners.
They are recommended
Whilst you will always need to check that an IP is licensed, it is always a good idea to find an insolvency practitioner that is recommended, for example, if you work closely with an accountant, solicitor or other professional whom you trust, they may be able to recommend a licensed IP that they have worked with previously.
They have a strong online presence
Needless to say, looking online can also be extremely useful. If an IP has a strong presence online and regularly updates their website with useful information about insolvency and the wide range of different options that may be available to insolvent companies, then this is a great way to build your trust in them.
Talk to BEACON
If your company is experiencing financial difficulties, it’s important to seek guidance at the earliest opportunity as you may benefit from more available options. As a licensed insolvency practitioner, we are here to help you find the best course of action for your business and your creditors, ensuring the most positive outcome.
To arrange a free initial consultation, please call us on 02380 651441 or contact us here.