Why turn to an insolvency practitioner?
If a business requires the assistance of an insolvency practitioner, then the chances are that cash flow issues or balance sheet problems will be prevalent.
These issues may even have led to the business deemed insolvent, in which case you’ll need expert support to get things back on track.
For the purpose of UK businesses, here is why turning to the support offered by the Insolvency Act 1986 can help to overcome poor fortunes.
Under UK law, you’ll need an insolvency practitioner to oversee formal insolvency procedures, and the firm you use must be fully licensed.
Should you opt to use a firm or individual that is not licensed, legal proceedings can be taken against you, which could exacerbate your position further.
An insolvency practitioner will ensure that the process is carried out within the UK legal framework for insolvent businesses.
Primarily, an insolvency practitioner will attempt to rescue the business by reviewing activity, dealing with creditors, and potentially selling of assets if required.
The key is to ensure that the outcome is good for as many parties as possible, including business owners, its employees, creditors and anyone else for that matter.
An insolvency practitioner can also chase for any monies that are owned to the business and can distribute any leftover money once all charges are paid.
While it may feel that you have few options left in such circumstances, it’s imperative that advice is sought as there may still be a solution available.
Refinancing and restructuring services can also help a business to turn things around, overcome debts and find desirable outcomes.
If your business is in difficulty, you should seek advice at the earliest possible opportunity, as it provides experienced insolvency practitioners such as Moorfields with the time and tools needed to overcome the problems faced.
By Phil Smith