“One of the questions we get asked the most often is when should people appoint an Insolvency Practitioner,” says Richard Simms, Managing Director, FA Simms & Partners.

“The answer is simple: as soon as you become aware of any signs of financial difficulties.”

Applies to everyone

This advice rings true for any type of insolvency – whether it’s a limited company, partnership, sole trader or private individual.

In each scenario, the sooner you seek advice the more options you will have. Leave it until it is too late and liquidation or bankruptcy may be your only choice.

Not always doom and gloom

Contrary to what you might assume, insolvency isn’t necessarily the end of the road as it may be possible to rescue your business and secure its future as a going concern.

After contacting an Insolvency Practitioner, the first thing they will do is review all the facts around your particular case. Only then will they be in a position to advise whether a turnaround package is an option or whether the company’s only route is formal closure, which they can then assist with.

Time is of the essence

It’s vital to ask for help before it‘s too late. Continuing to ignore the warning signs such as cash flow problems – and pouring yet more money into the company – will only compound your problems and reduce the chance of getting back on your feet.

So if you’re in debt and suspect it means insolvency is on the cards, we urge you to seek prompt professional advice from a Licensed Insolvency Practitioner – today.

You really do have nothing to lose but potentially a lot to gain!

Has this clarified things for you? Are you likely to recommend this article to anyone?