Licensed Insolvency Practitioner In The UK
What is a licensed insolvency practitioner?
A Licensed Insolvency Practitioner in the UK is licensed and authorised to act concerning an insolvent individual, partnership or company in the UK. Many IPs are accountants or insolvency specialists though lawyers and other individuals may qualify to act.
For further reading. Please check out our webpage “What is an Insolvency Practitioner.”
Why choose a Licensed Insolvency Practitioner?
If your company is falling into financial difficulty, then a licensed insolvency practitioner (IP) can advise on the contrast between a failing company and a successful one. The IP ensures your company considers the correct solution to your companies’ financial issues while ensuring creditors, employees and the companies’ hopeful future.
REMEMBER: Make a note of everything said for your own protection.
How does an insolvency practitioner get paid?
Usually, the insolvency practitioners’ fees remain paid from monies raised through the company’s sale of assets and monies collected from debtors of the company. Therefore, the company’s creditors normally pay the IP’s fee by receiving a reduced repayment or non at all.
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Why choose HBG Advisory!
- We remain regulated and authorised with the insolvency Practitioners Association to advise solutions, that help and support directors, companies, and creditors.
- Our practitioners have specialist areas assuring you of a highly experienced team to, therefore help you.
- Confidential FREE Initial advice is available now.
- Our team has advised UK companies for forty years.
- Distance is no problem. Indeed the process of Insolvency in most cases can be carried out on VIRTUAL meetings assuring you of your safety during the coronavirus pandemic and remaining private.
- Should you require to meet, we have offices and meeting rooms throughout the UK.
- All our advice is ins clear, understandable English though we also use interpreters if needed.
- Everything we recommend shall be put in writing, assuring you of your circumstances. VERY IMPORTANT.
- To view our team, please click on The Team at HBG Advisory.
Reasons for using a Licensed Insolvency Practitioner in the UK?
- Hazards & Risks:
- What are the Implications of Your Position?
- How Should You Control Payment Requests?
- What Strategies are Possible to Help Company Directors.
- Rescue & Recovery Options;
- Time to Pay Arrangements;
- Insolvency Options:
- Business Rescue:
- Business Closure:
What are the duties of a Licensed Insolvency Practitioner in the UK?
Therefore, an insolvency practitioner’s exact role and duties vary depending on the nature of the appointment. Insolvency practitioners act as liquidators in shut-down liquidation cases, nominees and supervisors in CVAs, and administrators for various company administration forms, including trading and pre-pack admins.
Choosing the right Insolvency Practitioner for you and your company?
No matter what course of action you may consider taking, the stress attached may affect your thought process. Therefore, TRUST plays very heavy in your decision. The Coronavirus Pandemic has attracted many new INSOLVENCY SPECIALISTS to the market who are not. They are merely acting as get rich agents dealing with unscrupulous parties. So, it’s essential that you then trust your to be appointed insolvency practitioner. Equally, you have to be honest, and Insolvency practitioners have fiduciary duties to carry out, An insolvency Practitioner MUST conduct themselves with INTEGRITY and COMPETENCE at all times. So if you do not trust them, do not engage them.
For further reading, please check out our web page; “Choosing the Correct Insolvency Practitioner.”
What are the outcomes of Insolvency?
Depending on the companies circumstances, therefore, will determine the outcome.
For limited companies (or limited liability partnerships known as “LLP’s”) registered in England and Wales. The outcome of an Insolvency can be:
- The company may go into administrator to enable a possible sale to protect jobs and improve its sale value. An administration then protects the company from creditors during this process.
- A further option to consider with willing creditor support is a Company Voluntary Arrangement (CVA). A CVA allows a company to agree to a formal repayment of an agreed amount over an agreed period. It is, therefore protecting a viable company moving forward by aiding cash flow.
- Finally, if the business is no longer feasible or sold, then Liquidation is the best option. If the directors receive approval from the companies shareholders? Then a Creditors’ Voluntary Liquidation (CVL) is adopted. If Not then the company may be wound up by say the HMRC and a Compulsory Liquidation began.
What is the distinction between an Insolvency Practitioner and the Official Receiver?
- Therefore, an insolvency practitioner ( Licensed by a Professional body) remains appointed by directors or creditors of a limited company to act on their behalf.
- The official receiver remains a provisional liquidator who is a civil servant employed by the Insolvency Service.
What’s the difference between a Liquidation and Insolvency?
- Liquidation closes a company down for good, sells all its assets to repay the company’s creditors, makes all staff and directors redundant, and then dissolves the company at companies’ house.
- With an Administration, this process then aids the company to maintain trading to repay its debts and avoid Insolvency.
Can I form a new company after Liquidation?
Yes and then may act as a Director. Though, having an Insolvency track record will eventually hinder you also, if you are under investigation for fraudulent trading with your last company or subject to a director ban.
Individuals cannot liquidate their own limited companies. A licensed Insolvency Practitioner is the duly regulated and authorised person that carries out the closure legally of a limited company.
Can a company recover from Insolvency?
However, insolvent companies have various choices for paying their creditors; therefore, they allow the company to remain an entity while recovering their business.
For further support, please then contact HBG Advisory on: