Why might I need an Insolvency Practitioner?
There are several reasons you may wish to appoint an insolvency practitioner. Perhaps your company is experiencing financial difficulties and is no longer viable, you may wish to wind down the business as it no longer serves a purpose or perhaps you are looking to retire and wish to close the business. The process of appointing an insolvency practitioner, can be done by the company’s directors and/or shareholders or the company’s creditors through the courts. In this article we will focus in the main part on the former circumstances.
If you are thinking of voluntarily appointing an insolvency practitioner due to financial hardship, as a director you are indicating your willingness to protect the interests of your creditors and minimising risk of personal liability for wrongful trading or misconduct. If you think you are insolvent, you have a duty to ensure that your Company does not continue trading to the detriment of the creditors.
In a creditors voluntary liquidation the creditors may confirm the shareholders appointment of a Liquidator using either a deemed consent or virtual meeting process however the creditors may also request a physical meeting takes place. Alternatively the directors may petition the Court for a winding-up order. We will look at these processes in more depth in future articles.
How to choose Insolvency Practitioner
If you are looking to appoint an Insolvency Practitioner, you can begin by searching your local area online at https://www.gov.uk/find-an-insolvency-practitioner or contacting your accountant to enquire if they have a preferred IP they can recommend. It is vital to ensure that your IP is fully licensed and has the necessary experience to provide the right advice to your business.
At McLenan Corporate, we have over 30 years’ experience in supporting businesses through insolvency procedures. If your business is viable our priority will be to help restore its financial health & wellbeing, allowing it to survive and thrive. We offer a free, no obligation review of your circumstances to explore the options available allowing you to make an informed decision about the future.
You can contact our licensed Insolvency Practitioner, Margo McLenan with confidence today on 07876 790 563 or email margo@mclenancorporate.com
It is so important to take action and not isolate yourself in worry about your business debt. The earlier we can be involved, the more options there will be for your business.