It has been observed that many corporate business houses are declaring their inabilities to settle their huge outstanding due to market vendors, employees, financial and legal institutions. The reasons could be vary from business to business but the most common reason for the financial mess up is mishandling of financial resources, improper maintenance of accounts books, malpractice in financial dealings, using the corporate funds for personal use, not getting the huge collection from the debtors etc. Many times the main debtors fail to repay the outstanding and as a result the company suffers the setback.
It is not possible to advance the commercial activities of the company without sufficient finance. If the company has acquired a loan from the banks or some tax issues are to be settled, outstanding payment for the services acquired, payment to the staff and vendors could cause lot of problem due to the inability of the company to settle them. The banks and government would start pounding heavy interest and that would be again very difficult to settle. In this type of tight situation, company sees no other alternative then to declare insolvency. To find a way or to escape from this bad situation, the company decides to file a case of insolvency and knocks the doors of the legal authorities.
But the right way is to consult some reputed and reliable insolvency practitioner. Insolvency practitioner generally acts as a bridge between their client, the creditors and court. He is well connected with all the legal departments and it would be easy for him to explain the right situation of their client. The owner of the business has to explain him the complete situation and movements of the business and the root cause of the financial bottlenecking. Insolvency practitioners are normally a team of professional lawyers, expert accountants and tax consultants and they try to understand the entire gamut of the company. If required they go through the accounts books of the company and come to the right decision finding the main cause of the bad health of the company.
If the financial mess up is due to any partner or director of the company, they call immediate meeting and ask him to settle the dues at earliest. If the problem is due to debtors, not settling the huge outstanding, they would consult them and explain them to pay the debts immediately or within the shortest duration of time. If they find any financial manipulation they would call the meeting of shareholders and staff and agree them on liquidating the assets of the company to settle the huge outstanding. Levi consulting is renowned for their positive insolvency services to safeguard their clients using their best resources. They are the authorized licensee for handling insolvency related cases. They would request the creditors to stop taking harsh actions against their client and allow them some more time limits to settle the dues.