To understand who are insolvency professionals, first, you need to know what is insolvency. So, when a company, an individual or a partnership decides to liquidate itself, it is considered to be insolvent. In simple words, Insolvency is the process of selling the assets in return for cash during the closing of the organization. The insolvency professionals are needed during this process to identify the assets, record all the transactions officially, and initiate the allocation of the money.
There are not one but thousands of legal procedures that need to be executed while the company shuts down. Especially if the company has declared itself bankrupt or its creditors are demanding liquidation. The duty of the insolvency professionals is to carry out the insolvency process with utmost fairness while protecting the rights and privileges of the insolvent organization. Today you can partner with a consulting firm or an insolvency professional agency to help you throughout the process and strictly abide by the norms stated by the Insolvency and Bankruptcy Code. With this, we hope that you might have gotten a rough idea about who are insolvency professionals and why they are essential during the time of Insolvency.
To give you a better insight on who is an insolvency professional, you must know what an insolvency professional agency is. Any agency registered under the IBC insolvency code is referred to as an IBC professional agency.
The main objective of these agencies is to conduct and supervise the activities during the Insolvency and dissolutionand monitor their insolvency professionals. These professional experts comply with the terms and conditions mentioned by the IBC code implemented by the IBBI (Insolvency and Bankruptcy Board of India).
The complaints made under section 217 of the insolvency code is IBBI's way to exercise control over the Insolvency professional agency and its professionals.
To become an insolvency resolution professional, one should be:
First things first, in order to be eligible for the position of an insolvency professional, he/she must get themselves registered with an insolvency professional agency. After that, they must have acquired the following qualifications and experience:
Once the above-mentioned requirements and qualifications are met, the applicant can start practising as an Insolvency professional.
The main function of the Insolvency Professionals is to evaluate the company's financial situation, partnership, LLPs, individuals, etc., and to ensure a smooth process of its dissolution. These experts, in certain possible cases, look for prospects to save businesses. Otherwise, the primary functions of the Insolvency Professionals are as follows:
At TRC Corporate Consulting, we focus on providing you with a personalized solution and preparing customized services as per your business requirement. So, be it liquidation process, Insolvency resolution, or financial advisory services, delivering the best services to you is our utmost priority. Our professionals also offer additional services such as 29 A Verification, Collation of claims, and much more.
We have a team of expert Insolvency professionals who follow, analyze and approach with impartial understanding before taking any further steps and keep you informed by updating you on everything about the proceedings. To know more about our insolvency services, contact us now!
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