What Draws Trainee Administrators to Insolvency?
School leavers and graduates alike are often unaware of a potential career in insolvency. Based on feedback provided to us, applicants are drawn to the variety of the work and dealing with many different businesses and people within the economy. BRI has dealt with clients across a wide range of sectors, meaning that the variety and experiences are broad in every sense of the word. Some graduates have touched on insolvency in their chosen degrees and are keen to gain practical experience in this area.
Many applicants ask a similar question to the interviewers regarding their experience. There are a number of common threads to these answers but it is likely to be different for each individual.
Some common threads include the variety of the work involved and helping directors when they are in a difficult situation from both a professional and a personal perspective. In the SME marketplace, the success of the business and the financial position of a family are often inextricably linked.
Trainee Insolvency Administrator: What initial training can be expected?
For Trainee Insolvency Administrator positions, much of the training received is on-the-job training where a Senior Administrator (or a Manager) sit down with a trainee and goes through the work that is required of them. In addition, the underlying reasons for undertaking the work will also be explained.
Trainee Insolvency Administrators also have access to “in house” videos which will explain various practical aspects of the job. They will also explain how to use the insolvency software that is an integral part of the work that we undertake as this records details about numerous different stakeholders.
An important aspect for all staff working in insolvency is the accurate recording of time spent on a particular insolvency case and how this needs to be recorded to be compliant. Specific training will be provided in this regard.
What is the experience of Trainee Insolvency Administrators in their first few months?
BRI work differently to some insolvency firms in that our trainees do not specialise in one particular insolvency process (e.g. members’ voluntary liquidations) nor in one particular aspect of cases such as asset realisations.
To some extent, the experience is somewhat dependent on the work coming into that particular office in their initial months with BRI. However, the aim will be for trainees to gain experience in less complex solvent liquidations (or members’ voluntary liquidations) where all creditors have been paid in full and, with tax advice from their accountant, members wish to withdraw cash tax efficiently from a company. Whilst there are exceptions to all generalisations, these instructions tend to involve less complex issues than other insolvency procedures.
In addition to solvent liquidations, our trainees may be asked to undertake tasks which form part of the procedures for most of the work BRI undertakes. Some common examples are:
- Initial client take-on procedures, including anti-money laundering requirements
- Logging receipt of claims from creditors
- Assistance in summarising bank statement information
- Distribution of monies to members of a company
How does the role change as a Trainee Insolvency Administrator gains experience?
One of the main shifts will be from undertaking predominantly solvent liquidations to dealing with insolvent liquidations, the most common procedure being a creditors’ voluntary liquidation. In a creditors’ voluntary liquidation, a lot of information needs to be provided to creditors within a comparatively short space of time. Much of this involves working in conjunction with the director(s) and a company’s appointed accountant and tax advisor. As part of this work, a trainee will see a much broader range of issues that are met in insolvent liquidations.
BRI are conscious of the level of complexity anticipated as part of each appointment and will look to staff this with the requisite blend of experience that is required. As you would expect, some creditors’ voluntary liquidations are smaller and less complex than others.