What does an Insolvency Practitioner do?

Essentially an Insolvency Practitioner (“IP”) helps individuals, businesses and companies deal with their financial problems.

IP’s can find themselves handling the smallest of insolvent companies or individuals up to large corporate restructuring, with all sizes of cases in between. This also includes running businesses, constructing and negotiating deals or investigating and advising on the viability of a business and its restructuring (and, sometimes, the integrity of its directors.) The work of the IP affects the lives, prospects and livelihoods of both creditors and debtors.

Insolvency work is as much about people as it is about figures. IPs need the personality and skills to deal with angry creditors, anxious directors and distraught employees. The insolvency scene is always changing. In particular, the effects of changing legislation together with the attitudes of banks and other creditors mean that, more than ever, IPs are business rescuers.

Whilst much of the work done by IPs involves formal insolvency procedures, they also use their skills to restructure and rescue businesses without resorting to formal insolvency procedures. Where an IP is appointed in a formal insolvency, the most common procedures are the liquidation of companies by a variety of routes and bankruptcies of individuals.

Even these cases, regarded as the ‘end of the line’ for businesses, often require imagination and determination to try to save as much of the business (and its associated jobs) as possible, or as a last resort to get the best possible price for its assets.

Even where a formal insolvency procedure is necessary, in many cases a positive and proactive approach to the rescue of the business and its jobs can be taken through the application of administrations, administrative receiverships and voluntary arrangements. The insolvency profession generally has been able to rescue increasing numbers of jobs and businesses in recent years, both because of legislative changes and the changing attitudes of creditors.

Overall, as at 2009, over 25% of insolvent businesses enter a formal rescue prodecure in one form or another and over 44% of insolvent individuals enter a process other than bankruptcy.

Comfort in Regulation

Since 1986, all IPs have been required to be licensed by a recognised professional body, such as the ICAEW, the Law Society, the Insolvency Practitioners Association, or the Insolvency Service, to name but a few.

Only licensed IPs are authorised to take appointments as administrative receivers, administrators, liquidators, trustees in bankruptcy, supervisors of voluntary arrangements and trustees under deeds of arrangement and trust deeds.

Association of Business Recovery Professionals

The Association of Business Recovery Professionals, also known as “R3” - Rescue, Recovery and Renewal, represents IPs as an effective ‘trade body’ to the Government, media and the public at large. It provides technical support and promotes the highest standards of practice and professional conduct for IPs.

Members benefit from drawing on the expertise of highly experienced IPs who make up the various Committees of R3.

As a Fellow of the Association of Business Recovery Professionals you can be assured that I am an expert in my field and will be able to help with an individual’s or business’s needs.


There is no substitute for expert advice

I have been dealing with and advising individuals, directors and companies suffering financial distress since 1986. In that time I have come across many instances where the skills and determination of an IP have resulted in a business being saved, or creditors receiving a return and directors and individuals minimising their personal liabilities.

For those in financial distress where they may have no idea of what they can do, or who to turn to, advice from an IP can make all the difference between a sensible solution for them and their stakeholders, or a ­disaster.