What is an Insolvency Practitioner?
An Insolvency Practitioner (IP) is someone who is licensed and authorised to act in relation to an insolvent individual, partnership or company. Most IPs are accountants or insolvency specialists working in firms of accountants.
- passed the insolvency examinations (JIEB exams);
- gained experience in insolvency work; and
- satisfied an authorising organisation (also known as regulator) that they are fit and proper to act as an IP.
IPs must follow the law and their work is monitored by regulators to make sure that they do. ICAEW is the largest single regulator of IPs in the UK. We monitor our licence holders to make sure they continue to be fit to carry out insolvency work.
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What does an IP's job involve?
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IPs are appointed to sort out difficult situations. In some cases, their main task is to try to rescue a business.
If it is not possible, the IP aims to:
- sell the assets of the person or company who owes money;
- collect money due to the person or company;
- agree creditors’ claims; and
- distribute the money collected after paying costs.
The IP’s work involves dealing with many competing interests, but usually their main duty is to look after the interests of creditors. Although creditors can give details of their claims, IPs will not agree the claims until they are sure that funds will be available.
In some cases, the IP will give advice to a debtor immediately before a formal insolvency process begins.
The ICAEW Certificate in Insolvency provides a practical introduction to the work of an insolvency practitioner. Find out more.
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How can I complain about an IP?
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Before making a complaint about an IP, you should make direct contact with the IP. Concerns often arise as a result of misunderstandings about the IP's role and it's always best to try to raise these with the IP in person.
An ICAEW licensed IP is able to advise on, and undertake appointments in, all formal insolvency procedures including, liquidations, company voluntary arrangement, administration, receiverships, bankruptcy and individual voluntary arrangements.
-
What does an IP's job involve?
-
IPs are appointed to sort out difficult situations. In some cases, their main task is to try to rescue a business.
If it is not possible, the IP aims to:
- sell the assets of the person or company who owes money;
- collect money due to the person or company;
- agree creditors’ claims; and
- distribute the money collected after paying costs.
The IP’s work involves dealing with many competing interests, but usually their main duty is to look after the interests of creditors. Although creditors can give details of their claims, IPs will not agree the claims until they are sure that funds will be available.
In some cases, the IP will give advice to a debtor immediately before a formal insolvency process begins.
The ICAEW Certificate in Insolvency provides a practical introduction to the work of an insolvency practitioner. Find out more.
-
How can I complain about an IP?
-
Before making a complaint about an IP, you should make direct contact with the IP. Concerns often arise as a result of misunderstandings about the IP's role and it's always best to try to raise these with the IP in person.