Insolvency Practitioners are licensed professionals that oversee and manage the financial affairs of individuals or companies who are struggling to pay their debts. They are also responsible for tackling financial wrongdoing and maximising returns to creditors. Insolvency proceedings are a formal legal measure used to deal with company and individual debt issues, and only an IP can be appointed to act as liquidator in these cases.
Before choosing an insolvency practitioner, it is important to make sure that they are qualified and licensed to practice in the UK. This will ensure that you receive the best possible service and advice. You can find licensed IPs through the insolvency practitioners uk Association (IPA) or the Insolvency Service website. In addition, you can also ask for recommendations from other business owners or professionals who have worked with an IP in the past.
The role of the insolvency practitioner is to help individuals or companies who are facing financial difficulties get back on their feet by helping them negotiate repayment plans with creditors. They also have a responsibility to report back to creditors throughout the process to ensure that all parties are aware of how the insolvency is progressing. The fees that an IP charges will depend on the type of case and the level of work involved. They will typically have a first meeting with you to establish how they can assist and set out what their fee levels are.
There are four Recognised Professional Bodies (RPBs) in the UK that license individuals to act as insolvency practitioners. The IPA is one of these RPBs and is the largest of them in terms of membership numbers. Those who are licensed by the IPA can offer guidance on, and undertake appointments in, all formal insolvency procedures including liquidations, bankruptcy, administration, receiverships and individual voluntary arrangements.
Licensed insolvency practitioners are required to meet certain educational, professional and experience requirements before they can be licensed. They must also adhere to strict ethical standards. In addition, they must complete a series of training courses and pass an exam in order to be licensed. Once they are licensed, they can then begin to practice in the UK.
As a licensed insolvency practitioner, you can choose to specialise in certain areas of the profession. For example, you can choose to become a specialist in corporate recovery or retail insolvency. By specialising, you can focus on a particular area of the industry and increase your chances of finding employment opportunities.
During the insolvency process, an IP will act as an administrator in cases of pre-pack administration and bankruptcy. They will work to realise the most return for creditors whether that is through a sale of assets or by facilitating an ordered closure of the business. Additionally, an IP can be a supervisor in an individual voluntary arrangement (IVA) or a company voluntary arrangement (CVA). In these roles, the supervisor will monitor the individual or business’s compliance with their agreement and help them come up with a plan to repay their debts.