What to look for in an Insolvency Practitioner

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If you’re having to consider the option of an Individual Voluntary Arrangement then it’s perfectly understandable that you’ll want to source the very best advice according to your individual circumstances – and even that of your family.

In this article we take a closer look at what you should look for in an Insolvency Practitioner; together with some of the commonly asked questions you’ll most likely want to ask along the way.

  1. First and foremost you should be completely comfortable with your chosen advisor together with the firm they work for. After all, you’ll be discussing very personal information with them and so it’s imperative you feel at ease and are confident that you’ll have a good working relationship going forward.  Remember, an IVA will typically last for a period of 5 years so it’s important that you’re both fully committed to getting the very best results and are confident you can work together during that time.  Once approved, you won’t be able to change your advisor throughout the duration of your IVA so you must ask as many questions as you feel necessary before signing on the dotted line and committing yourself.
  2. Never be tempted to work with any firm who ask for upfront fees. Most practitioners will enable their charges to be spread over the duration of your IVA which should ultimately make the arrangement much more affordable for you.  What’s more, if you pay fees upfront and your IVA proposal isn’t accepted by 75% of your creditors then you could easily find yourself out of pocket.
  3. Make sure that your advisor is absolutely clear on what you should expect from IVA Advice (both good and bad!). He or she should also talk you through any other options which might be available depending on your personal circumstances.  If they simply recommend an IVA without discussing other avenues then you might want to look elsewhere.  After all, an Individual Voluntary Arrangement isn’t a suitable option for everyone.
  4. Once you’ve discussed your financial position with your advisor he or she will start to work on your proposal for onward submission to your creditors. This will be passed to you for approval first.  However, never be tempted to agree to something which you don’t feel is realistic.  Remember, once approved, an Individual Voluntary Arrangementis a legally binding agreement which means you’ll have to maintain the 60 monthly payments going forward.  If you don’t think this is going to be achievable (for whatever reason) then honesty’s the best policy.  Never be tempted to sign up for something which you don’t think will work. If your IVA fails there can be serious implications – including the prospect of your creditors applying to make you bankrupt.
  5. Always go with your gut feeling when it comes to choosing the right firm to work with. If there’s anything you’re not quite sure about then don’t be afraid to ask.  If something sounds too good to be true, then it probably is!

Source: https://www.bmmagazine.co.uk/in-business/advice/what-to-look-for-in-an-insolvency-practitioner/

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