Business Advice
Who are insolvency practitioners?
Insolvency practitioners are people qualified by courts to give advice and act on matters of insolvency whether for private businesses or companies. Insolvency practitioners are involved in cases of liquidations, bankruptcy or winding up. Mostly insolvency practitioners are involved in cases of individual voluntary arrangements commonly referred to as IVA’s. An IVA situation involves an arrangement between the creditors and the business that is in the verge of being declared bankrupt or insolvent. The practitioner is required to offer guidance to the business or individual so that the creditors can give him an opportunity to pay debts at a discounted rate. This situation is also referred to as putting the business in administration. In the business world, involving a practitioner means you are no longer in control of your business. It is therefore necessary to think and plan carefully so that you can rectify the situation before putting the business in administration. Sometimes changing your financial plan or negotiating further with the creditors can put a stop to this situation.
