Being in a position where you’re unable to pay your company’s creditors is extremely stressful. In an attempt to avoid increasing the level of debt, many companies try to negotiate directly with their creditors and agree to an informal arrangement.

If the debt is quite small and owed to one creditor, and the creditor is being cooperative, entering into an informal debt arrangement is probably the best solution, rather than searching the web for ‘an insolvency practitioner near me’. It can be kept simple but there is a risk for both parties as the agreement is not legally binding.

On the other hand, if there are multiple creditors and the level of debt is large, creditors may not be so willing or cooperative. In order to avoid liquidation or bankruptcy, it is better to hire an insolvency practitioner to draw up formal proposals and negotiate with creditors on your behalf. Read more...