As an insolvency practitioner (IP), you likely face numerous demands on your time, but not all these demands are equally rewarding. One significant time burner that might resonate with many IPs involves lengthy consultations with directors of companies who have minimal liabilities and no assets. Here’s how you can manage this challenge more efficiently and free up valuable time.
The Common Scenario
Many IPs find themselves repeatedly dealing with inquiries from directors of companies that realistically cannot afford the costs of a Creditors’ Voluntary Liquidation (CVL) due to simple circumstances or financial constraints. Typical scenarios involve:
- Companies with no assets and minimal liabilities.
- Directors who are inexperienced with insolvency, making these interactions lengthy and repetitive.
- The absence of any fee for the IP, despite the significant time investment.
A typical call with such directors can take up to an hour, including time spent creating file notes, yet it results in no direct remuneration. With the rise of small companies facing such predicaments, these calls can significantly detract from more productive or profitable work.
Streamlining Your Approach
To handle these situations more efficiently, consider implementing a streamlined process that minimizes time spent while still fulfilling your professional obligations. Here’s a step-by-step guide:
- Initial Assessment Process:
Ask basic, direct questions to understand the situation quickly. These include: What are the director’s and the company’s names? (Conduct a quick company search.). What does / did the company do, and has it ceased trading? Is there a business that can be saved? What assets are available and what are their realisable values? What are the liabilities? Has the director sufficient free resources to easily pay the costs of the insolvency process? - Inform on Financial Realities:
Clearly outline the costs associated with a CVL and CL and compare them with the costs and implications of striking off the company using a DS01 form or through automatic strike-off by Companies House for non-compliance with filing requirements. Compare the costs and timeline. - Direct to Digital Assistance:
Guide them to use a generative AI-powered insolvency bot, licensed from VAi Solutions, which can provide more detailed advice and support, including drafting the appropriate letter(s) to creditors if necessary, all within a few minutes and free of charge.
Benefits of Leveraging AI
By directing directors to a generative AI tool like VAi, you not only save up to 45 + minutes per inquiry but also ensure that you’re providing valuable advice without a significant time investment. This approach allows you to:
- Focus on fee-generating activities or other productive tasks.
- Maintain a work-life balance by freeing up time previously spent on non-remunerative work.
- Fulfill your duties as an IP by providing accurate and necessary advice efficiently.
Conclusion
In the modern landscape of insolvency practice, where time is as valuable as expertise, integrating AI tools like VAi into your lead management processes can transform how you manage routine inquiries. This not only enhances your practice’s efficiency but also ensures you meet your professional responsibilities effectively and economically. As IPs, adapting to and adopting these technological aids is no longer just an option; it’s essential for maintaining competitiveness and sustainability in your practice, and giving you the quality of life you crave.
