Beware-of-Unqualified-Advice

The importance of using a licensed insolvency practitioner when your company is in financial difficulty

Unqualified guidance remains a concern in the corporate insolvency sector, underscoring the importance for company directors to remain vigilant and seek advice from licensed insolvency practitioners who are qualified and reputable.

In recent years, there has been an unfortunate rise in the presence of untrustworthy advisers, particularly online. Some falsely claim to be regulated firms with licensed insolvency practitioners but are often nothing more than lead-generation websites. These entities demand upfront fees, acting as intermediaries before passing your inquiry to unreliable ‘advisory’ firms lacking reputation or regulation.

In stark contrast, our approach sets us apart. We serve as exemplars in the corporate insolvency industry with 80 licensed insolvency practitioners nationwide, overseeing more corporate insolvency appointments in 2020 than any other firm.

 

We frequently counsel directors who have grown frustrated with their encounters with such advisers. Many of these concerns share common themes, serving as significant warning signs of a rogue, unlicensed, or untrustworthy corporate insolvency firm.

  • Charging upfront fees before commencing any work
  • Charging upfront fees through an intermediary who then refers you to an insolvency practitioner
  • Overcharging for ‘time spent’ that does not correspond to the actual work performed
  • Making extravagant promises to write off debts without understanding the company’s debt level or whether debts are personally guaranteed
  • Pressuring for a specific service on the phone when other options might be more beneficial
  • Inadequate or no communication after a fee has been paid
  • Failure to provide a clear explanation of the chosen process, such as Creditors’ Voluntary Liquidation
  • Creditors persistently contacting you, despite being under the protection of a formal insolvency solution that your practitioner should have communicated to them about
  • Unhelpful guidance regarding redundancies and their impact on your workforce
  • The process appears slow and/or the adviser fails to return your calls

 

If any of these resonate with your experience with a ‘corporate insolvency adviser,’ we encourage you to contact one of our licensed insolvency practitioners today. We provide a free initial consultation for all directors and can offer advice on various corporate solutions, including HMRC arrears, winding-up petitions, statutory demands, cash flow problems, finance options, and more.

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Senior Partner at Vanguard Insolvency Practitioners | Website | + posts

I am an insolvency professional with a distinguished career specialising in commercial insolvency, adeptly navigating Creditors Voluntary Liquidation, Company Voluntary Arrangements, and Company Administrations. With a comprehensive understanding of insolvency laws and an unwavering commitment to ethical practices.