Licensed Insolvency Practitioners

An Insolvency Practitioner, abbreviated IP, is an individual authorized under the Insolvency Act of 1986. An Insolvency Practitioner is appointed in relation to insolvency procedures.

In the United Kingdom only an authorized or IP can be employed for situations involving formal insolvency procedure.

Many Insolvency Practitioners have an extensive educational background in accounting, there are also IPs who have law degrees and may even practice law. Neither of these things is necessary to qualify as a licensed Insolvency Practitioner.

Insolvency Practitioners are able to advise on all formal insolvency procedures dealing with companies and individuals. They may advise, reschedule, reconstruct and reorganize for individuals and companies facing financial difficulties.

When dealing with an individual person an Insolvency Practitioner acts as:

  • A trustee in Bankruptcy.
  • An Interim receiver of property.
  • A Nominee or supervisor of a Voluntary Arrangement.
  • A trustee under a deed or arrangement.
  • A permanent or Interim trustee in a sequestration.
  • A trustee under a trust deed.
  • Administrator of a deceased insolvent estate.

When dealing with a company or a partnership an Insolvency Practitioner acts as:

  • A liquidator.
  • A provisional liquidator.
  • An administrator.
  • An administrative receiver.
  • A nominee or supervisor of a Voluntary Arrangement.
  • Trustee of a partnership.

How to become an Insolvency Practitioner

Insolvency is thought to be a controlled profession, those who wishes to employ as an Insolvency Practitioner must first pass three exams set forth by the Joint Insolvency Examination Board as well as meeting the minimum requirements. Typical standards to follow as an Insolvency Practitioner include: each member must comply with Statements of Insolvency Practice, act in accordance with its Professional and Ethical code, to take notice of Insolvency Practitioner bulletins presented by the Insolvency Service, to take into account the Guidance issued, and continue with their professional education.

Insolvency Practitioners are authorized by the IPA (The Insolvency Practitioners Association), an organization specifically recognized for the purpose of licensing Insolvency Practitioners.

The Insolvency Practitioners Association is the only recognized body solely involved in insolvency. Outside of the Insolvency Practitioners Association other organizations such as the Institute of Chartered Accountants in England/Wales, Ireland and Scotland are able to issue an Insolvency Practitioner license.

How an IP can help you?

Insolvency Practitioners have a lot of experience with every avenue of finances. They can provide an assessment of your personal or the company’s position. They also provide all-inclusive information about the different procedures and implication about you and/or your family.

Insolvency Practitioners also offer impartial advice on the appropriate actions available to each individual or company that has sought their service.

It is important when dealing with an Insolvency Practitioner that you are not afraid to ask questions. They are there to assist you and to bring your finances back into the black.
Asking questions and taking their advice can avoid dealing with the many consequences that come with a Bankruptcy. For example as a company you can us a Voluntary Arrangement or a reorganization of the financial structure where you will in a sense set up a plan to work out your financial situation with the Creditors.

Under the laws of the United Kingdom, if this Official Receiver does not presently hold office, the ensuing kinds of formal insolvency procedures must be confronted with the presence of a Licensed Insolvency Practitioner:

  • Bankruptcy.
  • Liquidations.
  • Individual Voluntary Arrangements (IVA).
  • Company Voluntary Arrangements.
  • Administrations.
  • Deeds of Arrangement.
  • Trust Deeds (only available in Scotland).

How Can You Find an Insolvency Practitioner?

The Insolvency Practitioner Association has a website that provides a link for you to easily search for an Insolvency Practitioner in your area. This website can also verify any Insolvency Practitioner that may have been suggested to you by a friend or colleague, providing you with accurate information as to their facility.

For your protection and service Insolvency Practitioners are subject to constant monitoring and an annual review of their authorisation and three additional yearly inspections.

In the United Kingdom Insolvency Practitioners are subject to oversight and inspection of the DTI Insolvency Service.
The DTI Insolvency Service acts on behalf of the Secretary of State for Trane and Industry. If you as an individual or company have any concerns or complaints about the actions or conduct of your Insolvency Practitioner you may contact the Insolvency Practitioner Association where you will be guided through the proper procedure to ensure that your concerns are dealt with accordingly and that any complaints are evaluated so that the proper action may be taken.

Visit this page to search the Insolvency Practitioner directory; Please note it is not a complete list of all IPs available in the UK.

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