Whether you have previously needed to use an insolvency practitioner or are considering if you need to use the services of an insolvency practitioner, we can give you information to help you to decide if the services are right for you.

We will outline below the services we can offer in November 2024 as licensed insolvency practitioners to show you how we can support your business during financial distress.

If you are looking at business recovery and deciding if a formal insolvency process is right for your business or whether individual voluntary arrangements would be best, we can help.

We can provide insolvency advice if you need support to decide your business recovery options. So, please contact us if you wish to discuss your options.

Who Are We?

We are licensed insolvency practitioners with decades of experience and are a UK nationally recognised specialist company in debt help.

We have assisted thousands of companies with business debt to ensure that company directors feel confident in their business financial decisions.

Our dedicated team of professionals are committed to helping clients navigate the complex landscape of insolvency and financial distress. We understand the unique circumstances and pressures that our clients face, and we strive to offer tailored strategies and guidance to achieve the best possible outcomes.

As a leading insolvency practitioner, we offer a wide range of services, including corporate insolvency, personal insolvency, restructuring, debt management, and advisory services. Our team possesses extensive knowledge of UK insolvency laws and regulations, enabling us to provide accurate, up-to-date advice and assistance.

We take pride in our client-centric approach, placing the utmost importance on building strong relationships and providing personalised support. Our team takes the time to listen, understand, and analyse each client’s situation thoroughly, tailoring our solutions to meet their specific needs and objectives.

Transparency, integrity, and professionalism are at the core of our values. We maintain the highest ethical standards, ensuring that our clients receive honest, reliable advice and guidance throughout their journey with us. Our aim is to empower individuals and businesses, offering them a fresh start and a path towards financial stability.

With a proven track record of successful outcomes and a deep commitment to client satisfaction, we have earned a reputation as a trusted partner in the field of insolvency. We are dedicated to helping our clients overcome financial challenges and regain control of their financial future.

Contact us today to learn more about our services and how we can assist you in navigating the complexities of insolvency with confidence and peace of mind.

What is an Insolvency Practitioner?

An insolvency practitioner (IP) is a licensed professional who is put in place to support a company or individual when there is financial distress for either an individual or company.

Insolvency practitioners can help set up Individual Voluntary Arrangements or a Company Voluntary Arrangement to begin the formal insolvency procedures.

Licensed insolvency practitioners are members of recognised professional bodies and will have a formal qualification for their country or region.

Insolvency practitioners are responsible for all aspects of business recovery and will liaise between company directors, individuals, and their creditors.

Licensed insolvency practitioners oversee every part of the insolvency process and discuss outstanding debts with the creditor.

Part of the insolvency process is cataloguing company assets; if required, insolvency practitioners will begin the company’s liquidation process.

A licensed insolvency practitioner can only be put in place by one of the current creditors of the company, an individual or a shareholder of a company with a valid power of attorney.

An insolvency practitioner’s role can sometimes include helping the company or individual to set up a structured repayment plan to assist with business recovery.

What is the Role Of A Insolvency Practitioner?

When dealing with a limited company, an insolvency practitioner may take on many roles to assist the company directors.

However, three roles are the most important in insolvency practice; we have detailed them below.

Liquidator

Whether dealing with insolvent or solvent companies, licensed insolvency practitioners are responsible for cataloguing a company’s assets.

The insolvency practitioner will then be responsible for ensuring that each of the creditors for the company receives their share of the company’s assets.

The insolvency practitioner’s role will vary depending on whether they are dealing with insolvent or solvent companies.

If the company is insolvent and, therefore, part of a compulsory liquidation process, struggling businesses will have multiple creditors.

The creditors in compulsory liquidation may include suppliers, lenders such as loan companies or banks, and landlords for the premises of the company registered address or other buildings.

The liquidation process will include the insolvency practitioner reviewing the creditors’ claims for outstanding payments for the struggling businesses.

The liquidator will then agree to creditors’ claims and begin making payments under the insolvency act.

If the insolvency service is carried out for solvent companies, the creditors will usually be the company directors and shareholders.

Licensed insolvency practitioners will then carry out the same process but distribute the company assets to these parties, again in line with the insolvency act.

Administrator

If a company is struggling financially, it may appoint an administrator for immediate advice.

An insolvency practitioner can advise on the best course of action in both pre-pack administration and standard administration processes.

The administrator will begin by offering advice regarding the best way to pay creditors, whether by selling the company or using the money collected to pay the creditors.

Alternatively, the administrator may decide that the best option is shutting down and begin the liquidation process.

Nominee and Supervisor

If a company decides to enter into a Company Voluntary Arrangement, the licensed IP will take on two roles in the process.

The insolvency practitioner’s role will first be on the part of the ‘nominee,’ where the licensed IP will create the proposal of the voluntary business arrangement.

The insolvency practitioner will then create the Statement of Affairs to inform the creditors how much they will each be entitled to if the Company Voluntary Arrangement is accepted.

If the creditors agree to the details of the voluntary arrangement, the licensed IP will become the ‘supervisor’ of the process.

The insolvency practitioner will then supervise every step of the Company Voluntary Arrangement.

They will monitor the business recovery throughout this period to ensure that they meet all of the voluntary arrangement terms.

During this process, they can continue offering advice to the company to ensure a successful future for the business after the voluntary arrangement concludes.

Ensuring Compliance with Insolvency Laws

There are, of course, laws that govern insolvency practice, and the best way to ensure that you meet all of the laws and regulations is to hire a licensed insolvency practitioner.

Limited companies and individuals can be certain of the insolvency practitioner if the IP they hire is licensed.

This will mean that the IP has been fully trained and has the appropriate training in the laws surrounding insolvency practice and company liquidation.

The IP must also inform the company directors of the company’s legal obligations under the insolvency act and any other appropriate laws.

Company directors should discuss any conflicts of interest before appointing the IP as the licensed insolvency practitioner will act on behalf of both companies and their creditors to reach the best outcome.

Licensed insolvency practitioners must be able to remain impartial and act ethically and legally at all times.

A prior connection to any of the limited companies or other creditors should be declared before the IP is appointed to avoid questions of them benefiting from any part of the insolvency or liquidation process.

You should also see advice regarding the laws for the industry that the company suffering financial distress is governed by.

The IP should be licensed to work within that industry and be fully aware of all legal practices and restrictions for that industry.

Choosing the right licensed insolvency practitioner can make a big difference during the insolvency and liquidation process.

Knowing that the IP is acting lawfully can save further financial penalties for the company later in the process.

How to Find a Licenced Insolvency Practitioner

Knowing when to involve a licensed insolvency practitioner and choosing the right one is essential to getting the best outcome for a company, its directors, and creditors.

If a company is in financial difficulty having an expert who can provide financial advice, liaise with creditors, and appoint an official receiver if required will remove a lot of the stress.

A company that is struggling financially must look at all of its options before bringing in an IP.

There are ways to restructure a company’s debts without beginning insolvency or liquidation processes. If a company chooses debt restructuring, an IP may not be necessary.

However, the financial advice that an IP can provide can be invaluable when trying to avoid liquidation or bringing in an official receiver.

If a company wishes to appoint an IP, the best thing to do is to search for a licensed insolvency practitioner who is local to the business or company directors.

You can speak to people you trust for recommendations or complete an internet search to find IPs in your business industry.

We recommend that you then review the websites of each of the IPs you are considering and view customer reviews to get an insight into each company.

The next part of the process is to narrow your shortlist down to one licensed insolvency practitioner.

The best way to do this is to look at the cost of each company, as incurring further unnecessary costs when already in financial difficulty is not the best idea.

Most insolvency practitioners will offer companies a free, no-obligation consultation to discuss the company’s needs and the services the IP can provide. We recommend meeting with each IP on your shortlist to compare the information they provide.

Checking for Credentials and Qualifications

After choosing the IP, you wish to work with; you should next check the validity of their qualifications and credentials.

You should check the IP’s license, qualification certificates, and other credentials to ensure they are valid, in date, and appropriate to the role.

If you are consulting with an IP in the UK, you must ensure that they are a member of a professional body and have the required qualification.

This will reassure you that the IP is currently practising in addition to having previously gained qualifications.

In the UK, IPs will be required to pass the JIEB exams set by the Joint Insolvency Examination Board before they can begin to practice as an IP.

If, when checking qualifications, you cannot see the certifications for the JIEB exams or anything from the Joint Insolvency Examination Board, you will need to question this further or choose another IP.

All IPs licensed to be appointed within the UK must also be authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority carries out interviews before authorisation to check qualifications and understanding of the legal frameworks that the IP will be operating under. If authorised, this is an excellent reference for the IP.

Credentials and past customers do not need to be numerous to prove that an appointed IP is good at their job.

However, you should always look at the customer testimonials for that IP before appointing them.

Check that the customers they have had are satisfied with the work completed and always ensure that the reviewers are within the UK for UK-based IPs.

Looking for Professional Advice or Guidance

If you need financial advice because your company is in financial difficulty, it is important to speak to an impartial and licensed specialist.

You should ensure that anyone you approach to discuss the company finances with is experienced in insolvency, bankruptcy, and liquidation matters.

This will ensure that you are receiving the best possible advice available and that, if appointed, the specialist you are speaking to will be able to complete all areas of negotiation. They should also be experienced enough to know when to bring in the official receiver.

Before an IP is appointed, you should ensure they are confident and capable of dealing with financial restructuring to avoid insolvency proceedings where possible.

It is important to consider whether or not professional advice is needed at every step of the process.

If you seek unnecessary professional advice, you will incur unnecessary costs. However, not seeking the correct advice when needed can also be detrimental to resolving financial difficulties.

We recommend using the free consultations offered by IP before you decide to get more information about the offered services.

What Services Does an Insolvency Practitioner Provide?

Licensed IPs will provide you with a range of services, both for companies and businesses in financial difficulty.

If working with a business, an insolvency practitioner will generally provide the following:

Business Restructuring

This is the process of analysing the finances of the company and planning how to restructure the business practices and finances to allow the business to continue to operate.

The aim for outcome of this option would be that the company becomes financially solvent and can grow to no longer need IP support.

Company Voluntary Arrangements

The IP will draft this formal agreement between the business creditors and the company to give a fixed repayment term for all debts.

This option aims to repay all debts over a fixed period and continue to operate.

Administration

This is the process where a company will continue to operate while the IP arranges the sale of the company assets to rescue the company so that the business does not fold.

The IP could be made the administrator of the process too.

Liquidation

An IP may be appointed as the liquidator when a company is being closed down due to financial insolvency.

This involves selling the company assets to use this money to pay any outstanding debts or as many as possible.

Insolvency Advice

If you find your business is in financial difficulty and you are unsure how to proceed for the best, you can contact an IP without them being formally appointed.

You can request financial advice to learn more about the above services and which would best suit your needs.

Advantages of Hiring an Insolvency Practitioner

If you or your business are facing financial difficulties, you could benefit from hiring an insolvency practitioner.

Most IPs can advise on various financial topics, as detailed above. This can save you from much stress when dealing with financial difficulties while protecting your interests.

Contacting an insolvency practitioner will ensure that you receive personalised advice, either as an individual or for a business. This will help to secure the best outcome for you or your business to avoid liquidation.

Although hiring an IP will cost you, which may feel counterproductive when facing financial difficulties, you can save more than you pay with the right IP.

Most IPs will offer you a free consultation before you hire them; we advise you to make the most of this to find out how you can benefit from appointing an IP.

In most circumstances, it is not possible to relieve financial difficulties without incurring some costs; it is, therefore, up to you to decide if the cost of the IP is worth what they can do to support you.

It is important to understand that hiring an insolvency practitioner does come at a cost, which may be prohibitive for some people on tight budgets.

Insolvency practitioners do not work for free, so any advice or help they provide will involve charges for their services.

It’s also important to note that while these professionals may be able to mitigate some losses incurred through debt issues, there is no guarantee that the debt can be eradicated without any costs incurred.

What to Expect from an Insolvency Practitioner?

We have discussed above the numerous services a licensed insolvency practitioner can provide when supporting you or your business through financial difficulty.

The knowledge and experience of an IP are invaluable when trying to save your business.

When reviewing which insolvency practitioner you wish to use, you may want to know the route you would like to go down with your business finance.

This is due to most IPs specialising in either formal or informal business recovery processes. The option you choose and how long it will take will also determine the fee you will pay to the IP.

During the initial meeting with the IP you are considering hiring, they should review your options and explain how each would ultimately work.

Based on the information discussed in that meeting, the IP should then be able to give you a quote for each service that they offer.

We recommend that you use this initial meeting as an interview with any potential insolvency practitioners to check their qualifications and experience as outlined above to ensure that the IP is correctly licensed and experienced.

You should also note that although you will be invested in ensuring that any IP is right for your needs, the IP is not a member of your staff.

You should expect that the IP will do their best for your company but that the IP is ultimately there to ensure that the money you owe is paid either through or before formal insolvency processes begin.

Although your company registered an interest with the IP, the IP should remain unbiased and will work on behalf of the creditors to ensure that all outstanding debts are reduced or paid off promptly.

Is an Insolvency Practitioner the Same as a Liquidator?

While an IP may become the liquidator if a business goes into liquidation, the IP has other roles leading up to or instead of being a liquidator.

An IP would become involved with a business in financial distress and aim to ensure all debts are paid.

If this becomes impossible, liquidation of the business may begin, and either the IP already working with the business or a new IP will be appointed as the liquidator.

Are Insolvency Practitioners Regulated?

Insolvency practitioners in the UK are regulated by professional bodies and regulatory authorities to ensure high standards of practice and consumer protection. The main regulatory body overseeing insolvency practitioners is the Insolvency Practitioners Association (IPA).

The IPA sets and enforces ethical and professional standards for its members, who are licensed insolvency practitioners.

Additionally, the Insolvency Service, an executive agency of the UK government, oversees and regulates the insolvency profession.

They maintain a register of licensed insolvency practitioners and have the authority to investigate complaints and take disciplinary actions against practitioners who fail to meet the required standards.

How Much Does an Insolvency Practitioner Cost?

The fees for an insolvency practitioner can range from £5,000 to £15,000 or more for corporate insolvency cases.

For personal insolvency cases, the fees can range from £1,500 to £5,000 or more.

It is important to note that these figures are general estimates, and actual costs may vary.

The cost of hiring an insolvency practitioner can vary depending on several factors, such as the complexity of the case, the size of the business or individual’s financial situation, and the specific services required.

When should I contact an insolvency practitioner?

When you become aware of financial issues, you can contact an IP to request advice; if you provide your company number, the IP can keep a record and complete any necessary checks.

If you need further advice, your company number or name will be enough for the IP to refer back to.

You can, alternatively, wait until you need to take informal or formal insolvency action before contacting the IP. However, the earlier the IP becomes involved, the more they can do to assist you.

Frequently Asked Questions

How Does an Insolvency Practitioner Help Companies in Financial Difficulty?

IPs can support companies by reviewing the full financial situation and providing advice regarding the best course of action to resolve financial difficulties.

IPs will also be able to discuss the legal requirements for companies when repaying outstanding debts, restructuring repayments, or entering into an informal or formal insolvency process.

What Qualifications Do Insolvency Practitioners Need?

An Insolvency Practitioner will need an education in finance, specialising in debt, debt relief, and negotiations.

The qualifications IPs need will depend on the area in which they practice.

An effective IP must also be fully trained and remain current regarding the laws governing insolvency practices.

A degree in accountancy or finance is the first step for an IP.

Additional qualification as a Certified Insolvency Practitioner or a Certified Bankruptcy Practitioner to show specialism would be appropriate.

If working for a firm of IPs, there will be ongoing professional training to keep skills current and up to date with changing legislation.

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