Law specialisms : Restructuring and insolvency

Harriet Swainson is an associate solicitor in the finance (commercial) department at Walker Morris. Harriet specialises in real estate insolvency, representing banks, receivers and insolvency practitioners.

What does the work involve?

Insolvency and restructuring teams are currently going through an interesting period. As a result of the double-dip recession, businesses and individuals alike are increasingly finding their financial position stretched as profits fall, jobs are cut and the cost of living and running a business continues to rise. This is also true for the lending business meaning there is less money available to lend - it is making for an interesting and often challenging area of law to work in.

A restructuring and insolvency lawyer will typically become involved in a matter prior to an insolvency event taking place. This will usually be to assist their client with its exit strategy from a bad debt. If no restructure is possible, the lawyer will then advise its client through the most appropriate insolvency process which will almost inevitably result in an asset or a business being sold.

There are many different aspects to this practice area from re-arranging a debtor's finances, to enforcing a bank's security. The work is often fast-paced and to tight deadlines as a result of working with real businesses in real time.

Hours vary depending on the type of firm you work at and the particular area you work in. If you are saving jobs by selling a business it is highly likely you will be expected to work outside standard office hours - it will be worth it though.

It is not surprising that most restructuring and insolvency lawyers are currently busy with the economy in the position it is in. It is likely, especially if interest rates rise, that the practice area will continue to be busy for some time. As financial institutions and businesses continue to struggle along it will be interesting to see how the law in this area might develop.

Who are the clients?

In broad terms clients will be debtors, creditors, insolvency practitioners or other entities that have a financial interest in the outcome (e.g. shareholders of a company, employees, HMRC, directors). Depending on the type of firm a lawyer works at, clients will vary from international finance institutions, accountants and companies to asset base lenders and individuals.

Many restructuring and insolvency lawyers will be dealing with other professionals and therefore aside from other commercial and practical advice, service levels are essential to maintain happy clients - treat your client as you would want to be treated.

What do trainees do?

As a trainee there should be many opportunities for you to become closely involved in an insolvency matter. Typical trainee tasks include:

• Completing draft court paperwork
• Research
• Reviewing security documentation
• Attending meetings and liaising with clients