When someone is struggling with debt, they need to take action as quickly as possible. Although there are a number of debt relief programs currently available, these can only be considered as a band aid to help get people back on track. licensed insolvency practitioners are the only people who can legally deal with serious debt issues and give individuals, businesses or companies a fresh start. They are also the only people who are fully qualified to do so, and it’s essential that anyone looking for a licenced insolvency practitioner (IP) should check that they have the right qualifications before engaging their services.

The role of an IP is to assist with and advise on formal insolvency procedures such as liquidations, administrations, receiverships and bankruptcy. An ICAEW-licensed IP can also act as administrators or supervisors in company voluntary arrangements and individual voluntary arrangements (IVA).

Licensed insolvency practitioners have the ability to assess whether an individual or business is insolvent and can carry out a number of different procedures on behalf of their clients. This can include acting as liquidators in cases of compulsory and voluntary liquidations, advising on and undertaking appointments in pre-pack and trading administration, facilitating and monitoring company voluntary arrangements, preparing the necessary paperwork to file for bankruptcy and consumer proposals, as well as filing these documents on behalf of their clients.

An IP’s primary duty is to look after the interests of their clients, and their work is regularly inspected by their licensing body. These inspections can typically last a few days and involve a selection of current and past cases being thoroughly assessed by the regulator. If an IP’s work is deemed to fall below the required standards, they will be subject to sanctions.

When working with a company in financial difficulty, an IP’s decisions will be based on which procedure will yield the best return for creditors. This may mean that they will sell the company’s assets to realise money that can then be used to pay back creditors, or it might be a case of helping the directors of a company come to an agreement with creditors on a debt repayment plan.

A licensed insolvency practitioner will be able to offer professional, valuable advice and guidance that can help a distressed company turn around its financial fortunes. They are also able to prevent a company from sliding further down the slope towards liquidation, and act as supervisors or nominees in CVAs, ensuring that the agreed monthly payments are made and that the terms of the CVA are met.

Many individuals and companies seek the assistance of an IP because they have been recommended by a colleague, friend or business contact. It’s important that those who are looking for an IP are able to validate their qualifications before engaging their services, so it’s essential that anyone considering an IP should use the government website to search for one and check their credentials. An IP who is reluctant to provide this information should be viewed with suspicion.