The evolution of the internet has provided us with a range of options when it comes to just about any service imaginable. This is especially true for when it comes to choosing insolvency firms.
If you’re seeking insolvency advice in Sydney or around Australia – whether it’s for a small business or a corporate entity – chances are you will want to do your homework before selecting one.
This article discussions several questions you should consider asking while going through your search for business insolvency advice. There are many solutions out there, you just need to find the most ideal one for your financial situation.
1. What upfront fees are involved, how can I pay them and are there any hidden fees?
It’s always important to read any contracts or terms and conditions as thoroughly as possible. This way you can avoid any unforseen fees later on down the track. Also find out what solutions they offer and how much each will cost.
2. What qualifications do you hold and how long has your business been operating?
Just like searching for a doctor or lawyer, you want to ensure your personal insolvency expert is exactly that – an expert in their field. You also want to ensure they don’t simply hand on your details to a third party, who may or may not have your best interests at heart.
3. Where will our conversations be held, and are they always private?
In the terms and conditions, your potential personal insolvency firm should have privacy information about how they use your personal details and whether or not they disclose information to external sources (generally they will not).
4. Are you registered with the Australian Securities and Investments Commission (ASIC)?
This is a big one. Insolvency firms in Sydney require that all practitioners are registered with ASIC in order to perform such work. The commission regulates both liquidators and personal insolvency experts, ensuring they keep up to standards set by the industry by checking whether they have:
- The required professional indemnity
- Fidelity insurance
- Qualifications, capability and extensive experience
- Been disqualified in the past
To find out if a personal insolvency professional is who they claim to be, you can check the liquidator registration page on the ASIC website.
5. Are you a member of a professional accounting body?
In Australia, personal insolvency professionals must be members of a professional accounting body – whether it’s the Chartered Accountants of Australia and New Zealand, or CPA.
By asking these five questions, you will be well on the way to selecting a professional insolvency practitioner who will help you find out if your company is insolvent or not. Then, they will be able to outline your circumstances and provide recommendations based on their experience and understanding of personal insolvency.
The insolvency process can be difficult enough, without having to worry about which personal insolvency firm you should choose. As a general rule of thumb, we recommend using these questions as a starting point for your selection process, to ensure you don’t receive poor advice from an inexperienced practitioner.
For more information on director advice, check out our director advice page here.