If you’re reading this with a knot in your stomach, you’re not alone.
One minute you’re trying to keep the lights on, keep staff paid, keep customers happy… and the next you’re being told you need to put your company into liquidation, sign something quickly, or accept a deal that feels a bit off.
Sometimes the advice is perfectly sound. Sometimes it isn’t.
And here’s the awkward truth nobody says out loud often enough: insolvency advice can be high quality, average, or poor… just like advice in any other profession.
The problem is this. The decisions you’re being asked to take are usually huge and irreversible.
So if the advice doesn’t pass the sniff test, you really need to get a second opinion.
Not because you’re being difficult. Not because you’re trying to waste time. But because you’re being responsible.
Why a second opinion matters so much in insolvency
Insolvency isn’t like switching accountants, changing banks, or tweaking a contract. Once certain insolvency steps happen, you don’t get a second chance.
A few examples:
- Once a liquidation starts, control shifts very quickly.
- Once assets are sold, they’re gone.
- Once a particular route is chosen, it can close off others.
- And once you’ve made statements or signed documents, they can follow you around for years.
So if you’re thinking, “I’m not sure this is right”… listen to that instinct.
Sometimes it’s nothing more than unfamiliarity with the process. But sometimes your gut is picking up on something real: rushed timelines, one option being pushed hard, weak – or no – explanation of alternatives, or fees that don’t line up with what you’re getting.
Where should the second opinion come from?
You can get a second opinion from another licensed insolvency practitioner, of course. But you can also get an initial second opinion from VAi, my insolvency copilot.
It’s free, it’s available 24/7, and it doesn’t have an agenda. It’s not trying to “win” your appointment. It’s there to help you understand:
- What the advice means in plain English
- What the usual alternatives are
- What the pros and cons look like for each route
- What questions you should be asking before you commit
That “unbiased” point matters. VAi doesn’t earn fees, doesn’t have a pipeline target, and doesn’t need your case to go one way or another. It’s simply there to help you think clearly. That’s why I created it.
Just keep one thing in mind: VAi provides general guidance, it is not a substitute for tailored professional advice, and there’s no guarantee of accuracy. That’s built into the tool’s terms.
So use it as it’s intended: a smart second set of eyes, and a way to become a better-informed decision maker before you sign anything.
How to get the best out of VAi
If you ask VAi a thin, Google-style question, you’ll get a thin, Google-style answer.
If you give it proper context, you’ll get something much more useful.
That’s why I teach a simple approach I call CIT:
CIT = Context, Interview, Task
1) Context
Put in the full context. Not just “my company is insolvent, what do I do?”
Tell VAi what’s actually going on:
- What the company does
- What’s happened to cause the distress
- Rough figures for assets, debts, arrears, HMRC, wages, loans
- Any personal guarantees
- Any secured lending
- Whether trade could be rescued
- What outcome you want (close, sell, rescue, step away, avoid wrongful trading risk, protect employees, etc.)
VAi can handle long prompts, so use that space properly. And please, don’t use real names. Use “X Ltd”, “Director A”, “Bank B” and so on.
If you want to see the video walkthroughs on how to do this, start here: “How to use VAi”.
2) Interview
This is the part most people skip, and it’s the part that massively transforms the quality of the answer.
Don’t try to guess what VAi needs to know. Tell it to interview you.
Use a line like this:
“Before you answer, ask me whatever questions you need so you can give the best possible guidance. Ask those questions now.”
That exact approach is one I recommend for professional users too, because it forces the gaps to surface early.
There’s also a helpful post showing how a structured “briefing sheet” style prompt can work in practice, and why VAi will ask follow-up questions just like a real IP would. Click here.
3) Task
Now give VAi a clear job to do.
Not vague. Be Specific.
Which brings us to the situation you’re in.
The Task prompt you should use when an IP’s advice doesn’t sound right
Copy and paste the structure below into VAi, then fill in your details.
You’ll notice it does a few things:
- It makes you lay out the facts clearly (which is useful in itself)
- It forces the advice to be examined, not just accepted
- It produces alternatives and safeguards
- It helps you handle the relationship with the other IP professionally
Your CIT prompt (ready to use)
CONTEXT
“I’ve received advice from an insolvency practitioner that doesn’t sound right. Here is the full context:
- Company: (What we do, how long trading, number of staff)
- Current trading position: (Are we still trading? If not, when did we stop?)
- Cash position: (Bank balance, weekly inflows/outflows)
- Debts: (HMRC, suppliers, loans, rent, employees, others)
- Assets: (Stock, debtors, plant, vehicles, property, IP, anything secured)
- Security and guarantees: (Debentures, personal guarantees, factoring, invoice finance)
- Red flags: (Bounce back loan, director’s loan, preference concerns, asset disposals)
- What I want ideally: (Rescue, close, sell assets, time to plan, protect staff, etc.)
- The advice I was given: (Explain exactly what the IP told you to do, what they said would happen, and any time pressure or documents they want signed.)”
INTERVIEW
“Before you advise, please ask me any questions you need to fill gaps or test assumptions.”
TASK
“Then please do all of the following:
- Explain the advice I’ve been given in plain English.
B. List the pros and cons of that advice, including risks to me personally as a director.
C. List realistic alternative routes I should consider, with pros and cons for each.
D. Tell me what safeguards I should put in place before I commit to any route (documents to request, questions to ask, warnings, and decision checkpoints).
E. Suggest how to deal with the other IP professionally if I want to challenge the advice or seek clarification, without creating unnecessary conflict.
F. Based on the facts, propose a recommended route and explain why. Also flag any assumptions you’re making.”
That’s it. That’s the whole CIT method applied properly.
If you want a simple starting video, watch the “How to Get the Best Out of VAi” video on the “How to use VAi” page which pulls a number of videos together.
How to deal with the other IP (without burning bridges)
This matters more than people think.
Most directors don’t want a fight. They want clarity, confidence, and a path forward.
A sensible approach is:
- Ask for the advice in writing (by email)
Not an essay. A summary is fine. But you want something you can review calmly. - Ask what alternatives were considered and ruled out, and why
A good adviser won’t be defensive about this. - Ask about the cost and the “cost drivers”
What will make it cheaper, what will make it more expensive, and what assumptions sit behind the estimate. - Ask what risks they see for you personally and how those risks are mitigated
If that question is brushed off, pay attention. - Be direct but polite
“I’m not refusing, I’m just doing proper due diligence because the decision is significant.”
And if you decide to change adviser, do it cleanly and professionally. No accusations. No drama. Just: “Thank you for your time, we’ve decided to take another route.”
A final word, because this is important
If you’ve been given insolvency advice and it doesn’t feel right, you’re not being paranoid, you’re reacting normally to a high-stakes situation.
Use VAi to steady the ground under your feet. Use the CIT method so the output is genuinely helpful, not generic. And use the videos on the site to see what “good prompting” looks like in practice.
Then, if you want to sanity-check things with a human being who’s done this for decades, get in touch – my number is 07813 102014, my email address is paul@midlandsbusinessrecovery.co.uk.
Because when the decision is irreversible, you don’t want to be thinking later, “I wish I’d asked one more question.”
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