How To Find The Right Insolvency Practitioner

If there's anything worse than facing business bankruptcy, it's having to do so and then finding the wrong Insolvency Practitioner (IP) for the job. For many IP's, business bankruptcy filings have become a volume business hence you will be just another battery when going through the production line, and debtors facing bankruptcy sometimes unfortunately obtain inferior legal services. For this reason, you'll need to do some research before hiring an Insolvency Practitioner.

First of all let me point out for legal reasons the word business bankruptcy does not exist in English Law, the word bankruptcy is only related to an individual not a business or a Limited company. But for simplicity we will using the common terminology as used by the average person on the street.

Here are 10 tips to help you find the best Insolvency Practitioner to handle your business bankruptcy filing:

1. Don't Delay and put this off. The idea of hiring a IP has all the allure of having teeth pulled. But don't let this prevent you from beginning your investigation for a good IP as soon as you know you're going to need one. Waiting until the last moment won't give a good IP enough time to adequately prepare your case.

2. Seek the advice of other legal professionals. Ask yourself which business acquaintances you know, who might in turn know a IP. If you have a personal accountant, that's a good place to start. Understand, however, that bankruptcy law is a specialty. If your accountant or solicitor offers to handle the case as part of your usual retainer, be certain he knows the Insolvency Law and is licensed by the Institute Of Insolvency Practitioners.

3. Spend a day at the courts. Observing bankruptcy proceeding in action might give you an idea of the type of IP you want representing you. At the court you can also find out which local IP specialise in this form of law.

4. Find out who sits on your local bankruptcy court panels. The only lawyers you'll find on this panel will be well-respected attorneys who regularly appear in bankruptcy court. Also, get the names of lawyers on the local bankruptcy court's debtor or creditor committees. People on these committees do it to attract business, but they also take their work seriously.

5. Visit an IP or two's offices. An office appraisal can give you vital clues as to how a IP would handle your case. Look around the office and see how well organised it is. Is it neat, or are there coffee-stained folders strewn about the floor? You wouldn't go to a doctor with a dirty examining room; don't hire a IP with a disorganised office.

6. Ask lots of questions. Once you have some candidates in mind, ask them the following questions (The answers to each of these questions are critical, so if you get evasive answers, it's probably a red flag that this is not the firm for you):
o What certifications do you have?
o How many bankruptcies have you handled?
o How many do you handle in a month or year?
o Of those, how many are business filings?
o How much access will I have to you during my filing?
o If I'm not working directly with you, who will I be working with?
o Can I interview the person with whom I would be working?
o What time frame do you have for this bankruptcy?
o How will the procedure work?
. • Evaluate the responses thoroughly. As mentioned, bankruptcy law can be a volume business, which means the time you'll actually spend with a specific IP might be minimal compared to what you spend with a clerk or a legal executive. This is yet another reason to conduct a thorough interview process, and to carefully evaluate the responses. Did each candidate answer you fairly and in sufficient detail? Do both the IP and the firm have the expertise you need? Do they appear overworked already?

6. • Don't hire the cheapest IP. Obviously, in this circumstance you don't have a lot of cash to spare. But like most things in life, you get what you pay for. You want a lawyer who knows the system, and who will do the best job of representing you. That may end up costing a little more. The Institute of Insolvency Practitioners can probably help you determine whether a proposed fee is fair and in line with local standards. Anybody who charges too much or too little probably shouldn't be your IP of choice.

7. • Get fee specifics. Find out exactly what's included in your IP's fees and what isn't. In some complicated proceedings, for example, a forensic accountant may be needed. If that's the case, is it included in your charges or is it an additional fee?

8. • Stay involved. Once you hire a lP, don't be content to let him or her handle it alone. Double-check all filings. Did any of your creditors get dropped off the list? Staying on top of your bankruptcy filing will help ensure that the proceedings go smoothly and will keep your lP on his or her toes.
9. • Plan of Action. The lP should map out a plan of action as well as advise you regarding the best as well as the worst possible scenarios, with the positives or pitfalls on the way. This is crucial since the future is at risk in any bankruptcy case and you should choose an attorney who can put together a good plan as well as help you re-establish your creditworthiness.

10. The above advice should hopefully be helpful and assist you in choosing one of the best IP. Lastly, do not choose an IP solely based on location either because it is close to you or is in a prestigious neighbourhood. Make sure you hire the Insolvency practitioner for their skill and the level of comfort they offer you as the client. Their services will be priceless in the end.

This article is published jointly by:
Moe Nawaz (Turnaround Consultant)
Kiran Mistry (Insolvency Practitioner)

Moe Nawaz www.ukadvice.com
Kiran Mistry www.wmproserv.co.uk