What an insolvency practitioner can do for you

Insolvency practitioners are qualified professionals who can assist with putting in place procedures for struggling companies and individuals.

If a company is considering a Company Voluntary Arrangement - that is, an agreement between the company and creditors of how a debt is to be repaid - then an insolvency practitioner will be involved on both sides. Initially, the directors of the company will make a written proposal to creditors, identifying an insolvency practitioner who must look at the proposals and report to a court as to whether or not the proposals are viable. If the proposal is viable, then the insolvency practitioner will usually call a meeting of creditors and members in which creditors will vote on the proposals. A majority of more than 75% will mean that the proposal has been approved and all unsecured creditors will be bound by it.

Insolvency practitioners are involved in most aspects of struggling companies, either assisting with the winding up of the company or attempting to save the company using one of the rescue mechanisms available. Insolvency practitioners are often responsible for making proposals and implementing them.

Insolvency practitioners also have an important role to play in bankruptcy. The insolvency practitioner will be responsible for considering if an Individual Voluntary Arrangement is appropriate and drawing up the proposals if it is. The insolvency practitioner is also likely to be responsible for drawing up a petition for bankruptcy on behalf of a debtor or creditor.

If you would like to obtain legal advice on insolvency, or any related issue, Contact Law can put you in touch with a local specialist insolvency solicitor / lawyer free of charge. So, if you have any questions or would like our help in finding insolvency solicitors / lawyers please call us on 0800 1777 162 or complete the web-form above.