The Role of Corporate Insolvency Practitioners: What You Need to Know

A number of different people are involved in the running of a company and the same can be said for the closing (or potential closing) of a company as well. A fundamental role in the closing of a company is that of a corporate insolvency practitioner.

Insolvency practitioners are professionals who are appointed to act on behalf of companies (and also individuals) when they are in acute financial distress. It is their responsibility to become familiar with their client and their financial position in order to understand the situation they are in and provide support throughout the liquidation process so a fair outcome for both the creditors and the company can be achieved.

The court is responsible for appointing corporate insolvency practitioner who needs to deal with either a company or an individual who is unable to pay their debts. Insolvency practitioner has the authorization to act as they have powers appointed to them by the Insolvency Practitioners Association. They have gone through training and as such have the ability to deal with various challenges that the insolvency, administration, and liquidation process might throw up. They are able to outline the options which are available to businesses and individuals so that they can make the best decision on how to move forward.

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