What Does an Insolvency Specialist Do?

An insolvency specialist is a professional who assists financially struggling companies to repay what they owe and, where possible, rescue them from liquidation. They are regulated by their professional body and their work is governed by strict laws. Insolvency practitioners are not only highly skilled but also have a good deal of knowledge about practice areas beyond insolvency itself, including anti-money laundering, data protection and vulnerability awareness.

In addition, there is often a requirement to liaise with legal teams when it comes to matters of the law and obtaining books, records and previous accounts, especially if a company is insolvent. The role can be challenging and requires a wide range of skills to cover the full spectrum of insolvency matters.

Insolvency Specialists: Key Players in Business Restructuring

Licensed insolvency practitioners (IPs) can be contacted via the UK Government’s Insolvency Service website or through various online directories. Alternatively, many solicitors and accountants have networks of practitioners that they can refer to.

Licensed IPs are also often called upon to act as mediators in a process known as a Company Voluntary Arrangement, where a company wants to remain in operation and negotiate with creditors for new terms for debt repayment instead of liquidation. These arrangements may involve a series of strategies, from renegotiating contracts to cutting costs and refinancing debt, to help the company come out of its financial difficulties. These types of cases require the ability to understand and communicate the financial position of a company in a way that helps all stakeholders understand it, even when it is disappointing news.