Professional guidance from licensed insolvency practitioners (IPs) is invaluable at any stage of business, and your company doesn’t have to be experiencing severe financial difficulty to obtain this crucial independent advice.
If you think you may be insolvent, or have already entered insolvency – perhaps you’re unable to pay your bills as they fall due – then you must find a licensed IP to provide guidance on the best way forward.
Given the large number of unregulated insolvency ‘experts’ advertising their services online, finding a local insolvency practitioner you can trust is essential. It’s very easy to be misled by people who claim to be insolvency advisers, but who simply refer you on to a licensed IP after charging for their services.
This results in paying twice for crucial insolvency advice, and delaying the guidance you desperately need – information that could help you avoid misconduct allegations as a director, and ensure you meet your legal obligations to creditors.
When your business enters insolvency you must cease trading and find a licensed IP to help you. Finding one who operates nearby is extremely helpful as it means you can meet them in person rather than communicating solely by phone or online.
You also benefit from their local knowledge in your sector, and their experience of issues that might be specific to your region. So how can you find a reliable insolvency practitioner who is licensed, and who operates locally?
If you carry out an online search for ‘licensed insolvency practitioner’ plus your town or area, it will deliver the results you’re looking for. You can then make a shortlist and contact each IP or firm individually.
Most reputable insolvency practitioners offer free initial consultations during which you can find out whether they understand your needs, and gain confidence that they’ll be able to help you.
Your local Chamber of Commerce may also be able to recommend a local insolvency practitioner based on their reputation and experience. In addition, your accountant or solicitor is likely to have connections with licensed IPs in the area.
So what is the difference between a licensed insolvency practitioner and an unlicensed insolvency ‘adviser’ or ‘expert?’ Licensed IPs undergo extensive training prior to becoming licensed, and must pass a series of stringent examinations.
Only licensed insolvency practitioners are legally able to carry out formal insolvency procedures, such as company administration and liquidation. So along with your area, whether they are licensed or not, is a key element of your online search results or recommendations from third parties.
Those who aren’t licensed are unregulated, so you have no form of recourse if they dispense bad advice, and you won’t necessarily know if their advice is even lawful. You might follow unregulated advice that puts you at risk of disqualification as a director, for example, or even personal liability if the company ultimately has to be liquidated.
It’s important to know that, if your business is in an insolvent position, your director duties change immediately and you must prioritise your creditors’ interests over those of the business.
UK Liquidators are licensed insolvency practitioners with an extensive network of local offices throughout the UK. In fact, we are the largest independent licensed insolvency practitioners in the country.
Our partner-led team has more than 25 years’ experience of advising and supporting company directors to deal with the business’ financial problems, and are ready to help. Please get in touch to arrange a free, same-day consultation.
If you are considering liquidation for your limited company, taking advice from a licensed insolvency practitioner can help you understand your options.
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If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
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