Unfortunately, the number of personal insolvencies is rising at a steady pace in the United Kingdom. In 2022, there will be an estimated 142,000 personal insolvencies. That is the result of a growth rate of about 6% since 2017.
Of course, with that many personal insolvencies, there are experts who have learned how to help people going through this problem. But most people don’t know that much about what is an insolvency practitioner and how they help people.
Read on to learn all about what an insolvency practitioner does and how one might be able to help you with your situation!
What Is an Insolvency Practitioner?
Both people and businesses can become insolvent. When that happens, they are left with a large number of options. Unfortunately, all of those options will come with their own disadvantages.
Insolvency practitioners are experts who find the best option for individuals and businesses. A quality insolvency practitioner may help you salvage your financial situation.
How Can an Insolvency Practitioner Help You?
One of the main things that an insolvency practitioner does is figure out how you can find the money that you need to pay back creditors. In particular, they can help you figure out the right order to pay back your creditors in.
Many people do not appreciate that which creditor you pay back first makes a difference. It can affect how much money it costs you in total to pay back your debts.
In some cases, finding money for debts means liquidating certain assets. An insolvency practitioner can help you find the right assets for liquidation.
In general, working with an insolvency practitioner can still be stressful. However, in many cases, it is the only available option to avoid a worse situation. Without an insolvency practitioner, you might be facing bankruptcy instead.
Fortunately, an insolvency practitioner might be able to help you negotiate some of your debts. By presenting your financial situation in the right way, they might be able to convince a creditor to adjust how much you will have to pay them back. You may also be able to enjoy lower monthly payments.
Along with everything else, insolvency practitioners can help you lose as little of your credit score as possible. Although there will still be serious financial repercussions, you can minimize the damage of your insolvency.
The more that you understand about what is an insolvency practitioner and how they can help if your company is insolvent, the more you might want to find quality professionals to help you. Check out https://companydoctor.co.uk/ to learn more about how an insolvency practitioner might be able to help you with business liquidation or other strategies for resolving your problem.
Understand What an Insolvency Practitioner Can Do for You
We hope that some of the ideas in this brief article about what is an insolvency practitioner and what they can do for you have been helpful for you. Many people do not realize that there are experts who can help them with insolvency.
To keep up-to-date on the latest developments in business, technology, and more, take a look through our other articles!
