If a client is still trading
Give advice about dealing with personal debt emergencies, such as council tax enforcement agents, and also provide basic advice about dealing with personal creditors. You may also be able to advise the client about the implications for continuing to trade, such as the risk to assets and further indebtedness. Since partnerships can be complex, it is often best to seek specialist advice.
Specialist advice is required if the client has any business debts or any complex business issues, such as a disputed tax debt. The client also needs specialist debt advice before deciding how best to proceed with their debts.
A specialist adviser looks at the client’s overall situation (at home and in the business) and also discusses how any action that the client takes could affect whether the client and the partnership can continue in business. The client also needs to be aware that some strategies, such as protected trust deeds, do not usually offer the same protection for partnership debts and the partnership itself may also have to enter into a trust deed.
In some cases, separate strategies may be required to deal with the partnership’s debts. Specialist advice is required. Advisers should have contacts for reputable firms of insolvency practitioners or accountants who can advise clients where specialist advice is required and can then refer them on – check what your organisation’s policy is for referrals.