The UK Insolvency Industry is a total mess.
A complete race to the bottom by the most unimpressive people you’ll ever meet.
We’ve now got to the stage where there are hundreds of insolvency firms praying on micro companies and their Directors. Why? Because they have zero actual skill. It’s better to abuse John the Builder for years than doing real insolvency work where there is a genuine public need. Or, I don’t know, start an actual business like everyone else?
The mass propaganda they have inflicted on the UK public and media landscape is mesmerising.
With their enormous marketing budgets they have convinced Directors that at the first sign of trouble they MUST speak to an insolvency practitioner. Complete and utter nonsense.
Funnily enough, they also say they are the only people qualified to give you advice. Those same people who are going to massively profit off that advice (the advice will be – kill your company immediately and we’ll put a charge on your house for when you bought too much printer ink and probably recommend you go to prison).
If I went to see a doctor and all his other patients walked in and then were wheeled into the morgue out back, I’d probably run out the door and go elsewhere. Yet because of the deep pockets of the insolvency industry, they have convinced people to turn up at the Colosseum, unarmed, and ask to be thrown to the lions.
Let’s end the Psyop today.
You have NO legal duty whatsoever to approach an insolvency practitioner at any point. NONE. ZERO. NADA.
You DO have a duty to act in the best interests of your creditors.
Creditors get NOTHING in the vast majority of insolvency cases because the IPs take everything.
So, on what planet would you be acting in the best interests of your creditors by euthanising your business?
I’ve asked lots of very high level Insolvency Practitioners the above question and nobody has yet given me an answer. Why? Because an Insolvency benefits one group of people alone – and it benefits them A LOT. Insolvency Practitioners.
If your mother was unwell and your legal duty was to protect those who relied on her, would you wheel her to the euthanasia clinic and tell them to ‘have at her’.
Of course you wouldn’t. And if you did, I’d recommend you be arrested.
Your legal duty is to protect the creditors interests. And the way to protect creditors is to avoid an insolvency at all costs. Have conversations around distressed sales and other ways forward.
If you’re struggling, give our office a call. If I’m around, I’ll speak to you personally.
Cheers!
Patrick
