A licensed insolvency practitioner (IP) is a person that has been authorised to undertake formal insolvency procedures such as liquidations, company voluntary arrangements, administrations and receiverships. They are also able to advise on and carry out appointments in personal insolvency procedures such as bankruptcy and individual voluntary arrangements.

When a business is struggling, a licensed insolvency practitioner can help to restructure the company and improve their financial health. This may include renegotiating contracts, cutting costs and refinancing debt. They can also work with the company to help it become profitable again.

Understanding Licensed Insolvency Practitioners: What Sets Them Apart

In the event that a company is insolvent, an IP will help to rescue the business through a Company Voluntary Arrangement (CVA). This involves renegotiating with creditors to lower monthly repayments and restructure the business’s finances in order to avoid liquidation.

Licensed insolvency practitioners are required to conduct their work in accordance with the law, and best practice set out by their licensing body. They are also subject to regular inspections of their past and current cases. If they are found not to be upholding the high standards of their professional body, their licence could be revoked.

Ultimately, an IP’s duties are to promote the interests of their creditors throughout the process. They must ensure transparent communication with all stakeholders, report on their progress and comply with the law. If you have a complaint about the way an IP has conducted their work, you should raise this with them directly using their complaints procedure.