What Does an Insolvency Lawyer Do?
Insolvency lawyers are contacted when companies or individual people are faced with financial difficulty. The insolvency lawyer will advise the individual or company or act for their creditors.
Typically the insolvency lawyer, or insolvency lawyer South Africa, will proceed to assist the individual or company to restructure its debts. This may mean negotiations with the debtor’s creditors. If a restructuring agreement cannot be met the insolvency lawyer will assist his client in the proceedings of sequestration in the case of an individual, or liquidation in the case of a company. The insolvency lawyer may work with other professionals during the course of the process, such as accountants and financial advisors. The insolvency lawyer will draft restructuring proposals and negotiate with your creditors on your behalf. If a creditor lodged an application of sequestration, the insolvency lawyer will act for the creditor. In either case, if restructuring cannot be negotiated, the individual or company will be declared insolvent and the sequestration or liquidation process may ensue. This does not mean permanent defeat, rehabilitation can be considered and where applicable, an insolvency lawyer can assist in the process.