Businesses generally only make contact with an insolvency practitioner when they are experiencing problems. One certain school of thought says that if a business owes money and cannot afford to pay its bills, then why not simply walk away?
Whilst this might seem like a good idea during some of the most stressful days of watching your company fail, it may have wide reaching repercussions that continue to affect for a long time afterwards.
In order to wind down a company officially you’ll need to employ the services of an insolvency practitioner. This is an individual who has a specific license and is granted formal powers in relation to formal insolvency procedures. They have a number of tools at their disposal to allow you to negotiate with creditors and cease business without further obligation.
If you simply end your business then it may be the case that your creditors continue to pursue their money. Even if you are not personally liable for the debts, agencies can still continue to chase you at home or even start pressuring your accountants for their owed money.
By using an insolvency practitioner you are able to create a formal arrangement with your creditors that ends your relationship and frees you from your previous obligations.
Personal Credit Ratings
It is never a pleasant situation when business fails. However, if you do not use an insolvency practitioner to cease your company’s trading then you are potentially exposing yourself to the intervention of the courts. This will open you up to the possibility that your own personal credit ratings could be adversely affected by the proceedings, resulting in future financial difficulties.
An insolvency practitioner will ensure that you do not suffer any unwanted consequences to your credit rating, freeing you to run businesses in the future.
A Versatile Approach to Financial Problems
Anyone who is experiencing difficulties handling their money and managing debt can use an insolvency practitioner. From individual personal debts through to company breakups, they have the ability to resolve your situation and leave you with no problematic responsibilities. This is achieved using a number of products that allow you to deal with debt effectively. Individuals can release their capital stored up in a business, companies have the facility to break down their creditors payments and schedules of imbursement.
Using an insolvency practitioner gives you access to the expertise necessary to use these products properly to ease the burden of financial responsibilities.
Insolvency and You
Over the past few years banking in the UK has switched from a system of outright money lending to one of asset finance. This means that many businesses have their obligations tied up with purchases, making lenders less likely to want to place them in receivership.
The pressure of effective debt management is now greater than ever. To find out how an insolvency practitioner will help you meet your financial obligations please call Leading UK on 0800 246 1845.