“Two years ago I was a partner in a practice that has recently entered into administration and now creditors are pursuing me.”
That was the opening statement by a professional advisor who PBC Business Recovery and Insolvency assisted after the realisation he remained jointly and severally liable for the practice debts.
In today’s society it is likely that a professional practice can find they have fallen on hard times just as any other business. It is also common for these practices to trade either as a sole proprietorship, a partnership or Limited Liability Partnership.
Therefore it is essential for the practice take early advice in order to develop a recovery plan before your professional body intervene. This may be a time to pay arrangement with certain creditors or a formal restructuring plan for the practice overall.
Each profession whether it is a solicitor, accountant, surveyor, doctors or dentist has its own profession specific considerations to deal with, from regulatory and compliance issues to upholding a reputation. However, the most important issue is the ability to continue to trade and protect the individuals from facing personal financial issues.
PBC Business Recovery and Insolvency have worked for a number of professional practices (and the individual members) and therefore fully understand the key issues, which has resulted in a great record for successfully finding the best resolution.
Even if the practice has the limited company protection it is often common for the directors to have signed personal guarantees for lenders. In these circumstances we have worked with these guarantors, together with their own advisors, to resolve their debt issues.