When it Gets Tough

What is an insolvency practitioner?

An insolvency practitioner (IP) is a licensed individual in a position of legal responsibility. An IP’s work is closely monitored and regulated to ensure it meets legal and professional standards, and the IPs themselves must satisfy the regulator that they are honest, qualified and competent. Under UK law, many types of insolvency procedures must be dealt with by an IP, including bankruptcy, liquidation, administration and voluntary arrangements.

The IP will act in the interests of the business and its creditors to try and reach a compromise, settle debts, and, ideally, rescue the company. If the company cannot be saved, the IP will oversee the sale of assets and the fair distribution of the proceeds to debtors. The IP will also act in an advisory capacity to the debtor, particularly in the case of a voluntary arrangement, as there are many different insolvency options available (see What is insolvency?).

If you need the services of an insolvency practitioner, or would like to talk to us about helping your company through a difficult period, please email InfoInsolvency@harris-lipman.co.uk or call (020) 8446 9000.

 

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