Licensed Insolvency Practitioners

licensed insolvency practitioners are the only people that can oversee formal insolvency procedures in the UK. They are able to act as liquidators in liquidations, administrators in pre-pack and trading administrations, and company voluntary arrangements (CVAs), and as supervisors or nominees in CVAs, Individual Voluntary Arrangements and bankruptcy appointments.

The role of an IP is very varied and requires a high level of technical knowledge. They are able to provide guidance and support to directors of businesses that are struggling and work with them to help them recover their business and move towards a more successful financial future. An IP’s fees are based on their level of experience and the complexity of the case. They are paid from the insolvent company’s assets or, in the case of a Members Voluntary Liquidation (MVL), agreed by creditors.

The Importance of Working with Licensed Insolvency Practitioners

An IP is also required to keep detailed records and comply with the relevant regulations. Their work is closely monitored by their recognized professional body, and they are inspected regularly. This involves a review of their systems, case files, and compliance documentation such as GDPR procedures. Any breaches are reported back to the IP and they are asked to make changes to their practices. This is a requirement to retain their licence to carry out formal insolvency appointments.