Licensed Insolvency Practitioner In The UK

Licensed Insolvency Practitioner in the UK. Author: John A Waller. Consultant. Reviewed July 9th, 2024.

What is a licensed insolvency practitioner in the UK?

A Licensed Insolvency Practitioner (IP) is licensed and authorised to act on behalf of an insolvent individual, partnership, or company in the UK. Many IPs are accountants or insolvency specialists, though lawyers and others may also qualify to act.

For further reading. Please check out our webpage “What is an Insolvency Practitioner.”

Why choose a Licensed Insolvency Practitioner?

If your company is experiencing financial difficulty, a licensed insolvency practitioner (IP) can advise you on the difference between a failing company and a successful one. The IP ensures your company considers the correct solution to its financial issues while ensuring creditors, employees, and the company’s hopeful future.

REMEMBER: Make a note of everything said for your protection.

How does an insolvency practitioner get paid?

Usually, the fees of insolvency practitioners remain paid from monies raised through the company’s sale of assets and monies collected from debtors of the company. Therefore, the company’s creditors normally pay the IP’s fee by receiving a reduced repayment or non.

For further support, please contact HBG Advisory on

Why choose HBG Advisory?

  • We remain regulated and authorised by the Insolvency Practitioners Association to advise solutions that help and support directors, companies, and creditors.
  • Our practitioners have specialist areas, assuring you of a highly experienced team to help you.
  • Confidential FREE Initial advice is available now. 
  • Our team has advised UK companies for forty years.
  • Distance is no problem. Indeed, the insolvency process can be carried out in VIRTUAL meetings, assuring you of your safety during the coronavirus pandemic and remaining private.
  • Should you require to meet? We have offices and meeting rooms throughout the UK.
  • All our advice is in clear, understandable English, though we also use interpreters if needed.
  • Everything we recommend shall be put in writing, assuring you of your circumstances. VERY IMPORTANT.
  • To view our team, please click on The Team at HBG Advisory.

What are the reasons for using a licensed insolvency practitioner in the UK?

What are the duties of a Licensed Insolvency Practitioner in the UK?

Therefore, an insolvency practitioner’s exact role and duties vary depending on the nature of the appointment. Insolvency practitioners act as liquidators in shut-down liquidation cases, nominees and supervisors in CVAs, and administrators for various company administration forms, including trading and pre-pack admins.

Choosing the right Insolvency Practitioner for you and your company?

Trust

No matter what course of action you may consider, the stress attached may affect your thought process. Therefore, TRUST plays a very heavy role in your decision. The Coronavirus Pandemic has attracted many new INSOLVENCY SPECIALISTS to the market who are not. They are merely acting as get-rich agents dealing with unscrupulous parties. So, it’s essential that you trust you to be appointed as an insolvency practitioner. Equally, you have to be honest, and insolvency practitioners have fiduciary duties. Insolvency practitioners MUST conduct themselves with INTEGRITY and COMPETENCE at all times. So if you do not trust them, do not engage them.

For further reading, please check out our web page, “Choosing the Correct Insolvency Practitioner.”

What are the outcomes of insolvency?

Depending on the company’s circumstances, therefore, will determine the outcome.

For limited companies (or limited liability partnerships known as “LLPs”) registered in England and Wales. The outcome of an insolvency can be:

  • The company may enter administration to enable a possible sale, protect jobs, and improve its sale value. An administration then protects the company from creditors during this process.
  • A further option to consider with generous creditor support is a Company Voluntary Arrangement (CVA). A CVA allows a company to agree to a formal repayment of an agreed amount over an agreed period. It protects a viable company moving forward by aiding cash flow.
  • Finally, if the business is no longer feasible or sold, liquidation is the best option. If the directors receive approval from the company’s shareholders, a Creditors’ Voluntary Liquidation (CVL) is adopted. If Not, the HMRC may wind up the company and enter a Compulsory Liquidation.

What is the distinction between an Insolvency Practitioner in the UK and the Official Receiver?

  • Therefore, an insolvency practitioner (Licensed by a Professional body) remains appointed by directors or creditors of a limited company to act on their behalf.
  • The official receiver remains a provisional liquidator and civil servant employed by the Insolvency Service. 

What’s the difference between Liquidation and Insolvency?

  • Liquidation closes a company down for good, sells all its assets to repay its creditors, makes all staff and directors redundant, and then dissolves the company at companies house.
  • With an Administration, this process helps the company maintain trading to repay its debts and avoid insolvency. 

Can I form a new company after Liquidation?

Yes, and then you may act as a Director. However, having an insolvency track record will eventually hinder you if you are under investigation for fraudulent trading with your last company or subject to a director ban.

Can I liquidate my business?

No,
Individuals cannot liquidate their own limited companies. A licensed Insolvency Practitioner is a duly regulated and authorised person who legally closes a limited company.

Can a company recover from Insolvency?

However, insolvent companies have various choices for paying their creditors; therefore, they allow the company to remain an entity while recovering their business.

For further support, please then contact HBG Advisory on

Book a Virtual Meeting - Free Confidential Advice
If you need help understanding the best way forward for your company, we can provide confidential free initial advice. You can book a free virtual meeting or call us on 0800 612 5448..
ACCA assisting in liabilities of directors
IPA Logo
TMA Logo
R3 Logo
Act Fast Once You Receive A CCJ.
Liquidation Specialists.
Experts in dealing with Company Debt


    Get Help Today

    1. Name: (*)

    2. Company Name:

    3. Telephone: (*)

    4. Email:

    5. Message:

    *Required Fields

    CALL TODAY FOR
    EXPERT CONFIDENTIAL ADVICE

    0330 056 3120

    Further Reading