I see this a lot…
But twice in 2 days!!!?
What am I talking about?
Small business owners with a company that’s really struggling financially, where there is no option but to close, who have been to an insolvency practitioner who has advised them that:
- Creditors’ Voluntary Liquidation is the route to go.
- They need that particular firm of IPs to carry out that CVL.
- The director(s) / owner(s) of the company need to personally pay for the liquidation, in one instance using the services of a company who will put in their redundancy claim to the RPS then send the money to the IP, in the other, just out of money they must go away and find!
This is appalling advice from the IP. It’s aimed at one thing only, and that’s earning themselves a fee. It’s nothing at all to do with providing the best advice to the client.
The point is when any IP is first consulted, our prime duty lies in providing the best advice to the person who has come to see us. Sure that changes if we are subsequently appointed as say liquidator, but right there and then at that first stage our prime duty is owed to the person sitting in front of us. And that means not trying to feather our own nest to the exclusion of providing best advice to that person. Yet it happens… often…
Read this article if you have been asked to personally pay the IP’s costs – Click here.
If you are seeking best advice, either first time (you’ve not yet seen an IP) or second time because what you’ve been told by an IP simply dos not sound right, then call and come and see me. The initial meeting is free, even if it’s just a second opinion you are looking for. Why not take a second opinion if you have already taken advice from an insolvency practitioner that just does not sound right? – because after all the decisions you are making now are very important and once acted upon can often not be undone.
My number is 07813 102014. And the phone is always on.
Insolvency practitioner covering Dudley, Wolverhampton, Walsall and the Black Country
insolvency practitioner based in the Midlands