As a business owner you may have envisaged having to make many decisions, but choosing an insolvency practitioner is unlikely to have been high on your list.
Although it’s a situation every business owner hopes to avoid, if the need arises and you are facing insolvency, you will need to choose the practitioner to work with.
You may feel less than enthusiastic about the prospect but the insolvency practitioner can have a very big influence on the outcome. It’s therefore worth spending some time and effort making sure you hire the right person.
Here are a few factors to consider.
Their track record
Not all insolvency practitioners achieve the same results so a good starting point is to look at the track record of the individual you are thinking about appointing.
A good insolvency practitioner will have a good track record.
Find out whether all of their previous work resulted in the company being liquidated or wound up, or whether they have experience in creating an alternative outcome, such as the formation of a phoenix company.
Whilst the final outcome may result in the business being closed, you want to be certain that all possible avenues have been properly explored before you reach that decision. A good insolvency practitioner will communicate to you simply and clearly, explaining all your options at every stage of the process.
Speed
Getting in the experts early on may seem counterproductive, but it means that you are likely to have more options.
Once you realise your financial black cloud isn’t going to pass, it’s a good idea to appoint an insolvency expert sooner rather than later.
But if you want to take advantage of an early appointment, it’s essential that the insolvency practitioner shows the same degree of urgency. If they are slow to respond and can’t arrange a rapid appointment, either in person or over the phone, you might want to find another person.
Attitude
Going through the insolvency process can be a very emotional time, and involves hard decisions. Throughout this period you need practical help, but it’s also important that you don’t feel criticised or judged.
An insolvency practitioner can be effective yet have empathy too, and someone who appreciates your struggles will work harder to help achieve the best possible outcome for you as well as your creditors.
Having the right attitude will make the process far easier, and allow you to feel more comfortable about divulging information and being honest about difficult subjects.
Be specific
Make sure you have the right attitude so you don’t lose too much money.
If you are considering appointing an insolvency practitioner you may well have many questions about the process and what your options are likely to be.
Whilst a company insolvency practitioner may not be able to answer everything without going through your company finances, they should be able to give you a good idea about what to expect, and the types of possibilities that may arise.
A practitioner who is vague and dismisses your concerns, or says that they will address them at a later date should be viewed with caution.
References
Just like any other kind of appointment, getting references from others who have used their services is a smart move when looking for the right insolvency practitioner.
Although it’s a sensitive subject, there should be past clients who are willing to testify to the quality of the service they received. Ideally you would be looking for any references from someone who works in the same industry as you.
Conclusion
Hopefully you will never find yourself in the position of needing an insolvency practitioner but if this is the case, following the above top tips should help you find the right professional who can help you to achieve the best possible outcome.