Insolvency is a tricky situation for businesses because it means that you do not have enough funds to pay off your debts. Cash constraints in the course of business are a normal thing but insolvency is a state of financial distress. It is indicated by your liabilities exceeding your assets, and the situation does not seem close to resolution in the future.
The causes of insolvency may be diverse, from poor money administration to decreasing cash flow, increasing expenses, or more.
Whatever may be the reason, you should have a proper strategy in place to deal with the situation because it puts your business and reputation at stake. While the ideal solution would be to dispose of the assets for paying off the liabilities, it may not be as easy as it sounds.
If things appear dicey for your business, it would be best to hire an insolvency solicitor to manage your financial obligations and outstanding debts at the time of declaration of insolvency. Here are some tips that would be useful for collaborating with the right legal professional.
Experience
Business insolvency is a complex matter that needs to be handled with great expertise. This is where the experience of the attorney matters. Be sure to ask the lawyer about the number and type of insolvency cases handled in the past and whether he has helped a client in a situation similar to yours. Having the right experience makes the lawyer capable of understanding the nitty-gritty of even the most complex cases and resolving them at the earliest, which you would probably want to do in case of business insolvency litigation.
Competence
Competence, in this case, means the technical knowledge of the insolvency law, which happens to be a niche domain. A lawyer may have been in the industry for decades but not being adept at the latest in this particular area of law may have a negative impact on the chances of success in your case. Therefore, you must ensure that you seek advice from someone who has in-depth knowledge and can address the most complex issues with skill. A good look at their track record can give you a fair idea about their capabilities in this field of law.
Reviews and recommendations
Another factor that can be of great help in selecting the right Insolvency Litigation Solicitors is the first-hand reviews and recommendations from real clients. Ask around people in your circle to get references to a lawyer or firm that has helped them or someone they know. To find out about their reputation in the industry as well. You can even check online for reviews of real clients to get a genuine opinion. Since you will already be in a fix while dealing with insolvency, you cannot afford to collaborate with someone who is not good enough because this will only add to your woes.
Litigation fees
When your business is in trouble, the money will obviously be a big concern. This makes it important to know the litigation fees of the attorney you plan to hire for your insolvency case. After all, you would not want to add to your troubles by hiring someone who is out of your budget. Look for someone who charges reasonable fees but at the same time, do not compromise on service quality and experience.
Find a balance between the two so that you maximize the chances of a successful closure without being burdened with their exorbitant fees. Before finalizing a solicitor, shop around to get an idea about the optimal cost of hiring an insolvency lawyer in your area.
Availability and turnaround time
Since your solicitor will be responsible for getting your business out of the fix, be sure that they are dependable enough. Ask them about their availability during the course of the case because you may need their advice time and again. Check the mode of communication and turnaround time as well because you would not want to be stressed out waiting for appointments when you need them the most. Also, get estimated timelines for the closure of the case, which experienced solicitors are probably able to give in most cases.
An expert insolvency solicitor can bail your business out of trouble so that you can think about getting a fresh start. This is the reason that you must choose none but the best for handling this critical situation and getting you back on your feet at the earliest. Following these tips can make all the difference in helping you choose someone who is good enough.