An Insolvency Practitioner (IP) is a professional who is qualified and authorized to assist an insolvent individual, partnership, or corporation in legal matters. Most IPs are accountants or bankruptcy experts working for accounting firms.
Learn how to become an ICAEW Insolvency Practitioner.
A licence is required to operate an international public call sign and must have:
Given that a company is bankrupt, it must undergo comprehensive annual and/or quarterly examinations. The JIEB is an independent insolvency examination body set up by the government to administer these examinations on behalf of IPs.
IPs are accountable to the law, and their activities are regulated by authorities to ensure that they do so. The Institute of Chartered Accountants in England and Wales (ICAEW) is the country’s main regulator of IPs. We keep an eye on our licensees to ensure that they remain competent to perform bankruptcy services.
What does an IP’s job involve?
NIPs are assigned to resolve difficult situations. In certain circumstances, their primary duty is to try to save a company.
The IP attempts to:
- You want to sell the assets of the individual or firm who owes money.
- Acquire money owing to a person or firm.
- Allow for the consolidation of claims from creditors; and
- Pay the required costs with the money gained.
The job of an IP is to balance several disparate interests, but they are usually responsible for the needs of creditors. Although claimants can provide information regarding their claims, IPs will not accept them until they are confident that money will be accessible.
In certain situations, the IP will give advice to a debtor before the commencement of a formal bankruptcy procedure.
The ICAEW Certificate in Insolvency is a comprehensive introduction to the duties of an insolvency expert. For more information, see our website.
How can I complain about an IP?
It is always advisable to contact the IP in person before filing an IP complaint. As a result of misinterpreted roles, many issues arise, and it’s usually better to try to resolve them directly with the IP.
Bankruptcy
Personal insolvency proceedings after a petition to the court. This happens when people are not able to pay their debts. It takes away most of their property (for example, their house and other valuable belongings) and the money collected from selling these is then shared among the people they owe money to (their creditors).
A bankrupt (the debtor) may not act as a company director, and if they trade as an individual, must do so in their own name. The IP can act as the bankruptcy trustee.
Liquidation
Incorporate insolvency, the assets (for example, buildings, equipment, and vehicles) of a firm are taken by an IP (acting as a liquidator), sold, and the cash is utilized to pay creditors in order. The courts may make an order for liquidation (sometimes referred to as “winding up”) or company directors may opt to put the firm into liquidation.
Administration
A method for an IP (acting as the administrator) to try to save a firm or sell its assets in order to repay as much of what they are owed as possible.
Voluntary arrangement
A technique for a debtor to enter into an agreement with creditors in order to pay off all, or a portion of, his or her obligations. The IP (acting as a supervisor) ensures that the conditions of the agreement are satisfied. Voluntary agreements are also available to businesses.
Receivership
A bankruptcy procedure in which a debtor’s assets are seized by the courts and placed under the control of an IP (acting as either a receiver or an administrative receiver) for a secured creditor.
If you’re looking for a qualified insolvency practitioner, why not contact Irwin Insolvency. They are a registered IP firm, with an excellent track record in the industry. Our services are offered at highly competitive rates, and if you would like to find out more about their Insolvency Services, click here.
