What Does an Insolvency Attorney Do?
Insolvency attorneys act for clients in financial difficulties. Typically, an insolvency attorney will proceed with restructuring as a way forward to manage repayment to creditors without the client becoming insolvent. insolvency attorneys may act for either the creditors or debtors.
When a restructuring solution cannot be met, the company or person will be deemed insolvent. When a company is declared insolvent, the company is liquidated, and a liquidator is appointed to evaluate the assets of the company to settle the company debts. When an individual is declared insolvent, he is sequestrated, and a curator is appointed to evaluate his assets and settle with the debtor’s creditors. Insolvency attorneys assist from the start of the process and liaise with the different professionals as they become necessary. It is also important to note that there is voluntary sequestration and compulsory sequestration. Voluntary sequestration is when a debtor applies to the court for sequestration of his own estate. There are qualifying criteria which must be met to sequestrate your estate voluntarily. An insolvency attorney should be consulted regarding the procedure. Compulsory sequestration is when a creditor applies to the court for the sequestration of his debtor’s estate. An insolvency attorney will be appointed to start the process.