An Insolvency Practitioner is a licensed professional who offers insolvency services to businesses looking to save or wind up their Limited Companies, as well as individuals looking to deal with their personal debt problems. An Insolvency Practitioner (IP) is a person licensed and allowed to operate with respect to a person, partnership, or insolvent corporation. A licensed insolvency practitioner, or IP, is a person authorized, in accordance with the provisions of the Insolvency Act 1986, to act for appointments of individuals and companies to be insolvent.
In the UK, only licensed Insolvency Practitioners are allowed to make appointments regarding formal insolvency proceedings, both for individuals and businesses. Among other restrictions, an individual cannot be appointed as an insolvency practitioner if he/she is insolvent or is subject to restrictions relating to bankruptcy, or is disqualified from acting as a director of a company.
If the insolvency practitioner has been appointed to advise a company’s board before a formal insolvency proceeding begins, they will advise the directors and outline their duties during that period. It is the role of the designated licensed insolvency practitioner to supervise a company’s wind-down process from beginning to end. In such situations, the insolvency practitioner provides an independent assessment of an organisations or individuals financial situation, and guides it through insolvency proceedings.
Depending on the exact role the insolvency practitioner is appointed to in a business, this role will be performed in order to communicate with creditors, negotiate terms, and realize assets. Their role usually involves several tasks, including dealing with creditors of an insolvent company, or, in the case of an enterprise rescue process, like administration, offering advice as to how a company can avoid being wound up entirely.
The Code of Ethics for Insolvency Practitioners should apply to any professional work which might result in, or involves, the appointment of insolvency practitioners. Yes, and we conclude the requirements are neither direct nor indirect discriminatory. Domestic law requires that the authority bodies make sure those individuals who are licensed to operate as insolvency practitioners are suitable and appropriate, with appropriate experience and qualifications.
It might be that there are safeguards the practitioners could impose to ensure that they are in line with fundamental principles, or that it might be necessary for them to refuse to act in an insolvency appointment due to a threat of non-compliance. An insolvency Practitioner should also ensure they do not use any confidential information obtained through the course of their commercial or professional dealings to make personal profits or to make profits for a third party.
If you believe you might need insolvency practitioners’ services on a personal basis, or think that your business might need some financial assistance, it is important that you take action swiftly. Insolvency experts provide personal, professional advice which can help to protect your business. With a free initial consultation and a personal approach to each case, Bridge Newland is ideally placed to offer the advice and guidance that you need should your business face financial difficulties.