insolvency practice is the business of managing insolvent or financially distressed businesses, individuals and companies. It involves advising on and overseeing formal insolvency procedures such as liquidation, administration, receivership and judicial management. It also encompasses advisory and dispute resolution work within the insolvency context as well as assisting with the restructure of businesses in distress.

The exact role and duties of an insolvency practitioner depend on the type of appointment undertaken: for example, they act as liquidators in shut down liquidation cases; administrators (with a range of responsibilities including acting as nominees and supervisors) in company voluntary arrangements and pre-pack administrations; and Trustees in Bankruptcy. In addition, they will manage the day-to-day operation of an insolvent’s estate which includes a number of matters such as confirming and recording book debt claims; arranging for the valuation and disposal of assets; liaising with creditors; corresponding with third parties; and making statutory submissions.

Exploring Your Options: Finding the Right Insolvency Practitioner for Your Company

As part of their licence to take appointments, insolvency practitioners are required to report on a quarterly basis to their regulatory body describing the work they have undertaken over the previous three months. The information provided will also help the regulator identify any issues requiring attention or further investigation.

It is important that you select the right IP for your situation, whether that be an insolvency practitioner to handle a company liquidation, CVA or MVL. It’s a good idea to get professional referrals and to meet practitioners for consultations to assess their communication style, experience and expertise.