When an individual or business is financially struggling, people often suggest speaking to an Insolvency Practitioner (or IP for short). But what are IP’s, what do they do and how are they regulated?
An insolvency practitioner is someone who is authorised to act in relation to an insolvent individual, partnership or company. They are often accountants or insolvency specialists working in a firm of accountants. However, like Gareth at The Insolvency Company, they can also be independent.
Insolvency Practitioners (IP’s) are very strictly regulated and must have:
- Passed insolvency exams (JIEB)
- Gained sufficient experience in insolvency work; and
- Satisfied an authorising organisation, a regulatory body, to ensure they are fit to be an IP
- Adequate insurance which protects your business
IPs have a vast amount of experience in dealing with struggling businesses and are best placed to advise on your options. In many cases, they can advise you on how to rescue your business.
If rescuing the business is not possible an IP helps the directors to close their company by placing it into liquidation. Once the company is in liquidation the IP takes control of the company and follows all the steps necessary to close the company. This includes; ensuring that employees are able to claim redundancy, deal with company assets, and ensure that any available funds are distributed to creditors.
Over recent months, owing to the global pandemic, there has been a huge rise in demand for the services of IP’s. More businesses than ever require specialist advice. It’s essential that you seek advice from a regulated professional who has the experience and knowledge to assist you. You can check if the person you are speaking with is a qualified and regulated IP at the following link: