Business Advice

A Licensed Insolvency Practitioner’s Role

Businesses that are facing financial problems from creditors are usually doing poorly in their operation. These companies are under the threat of shutting down due to the huge problems and legal threats from creditors. It can no longer pay its creditors due to a decrease on their profits or gains. A company is facing possible bankruptcy when its liabilities exceed its assets. If this happens, a company should immediately seek help or advice from licensed business insolvency practitioners regarding its liquidation.

A licensed business insolvency practitioner (IP) is the only one allowed by law to conduct the whole insolvency process of a troubled company. It is the insolvency practitioner’s responsibility to resolve the company’s insolvency problem on behalf of the company’s directors and its creditors. The IP will be the one to administer the liquidation of the company’s assets. He will also be the one to administrate the sale and the return of any assets of the company.