Insolvency Practitioners

Insolvency Practitioners

As you’ve already learned, an Official Receiver handles the initial stage of your bankruptcy. However, if you fail to cooperate with them (or choose to go down the Individual Voluntary Arrangement route), they can pass your case on to an Insolvency Practitioner (IP). What’s the difference between an Official Receiver and Insolvency Practitioner? Well, the former has the power to investigate your affairs and take control of your assets, but they are not allowed to sell them. However, things change when an Insolvency Practitioner takes over your case. They have the ability not only to take full control of your assets, but they also have the power to sell them for the best price on behalf of your creditors, while providing them with regular progress reports. Once they have sold all of your assets, they will use the money raised to pay all of your creditors what they are owed.

As you can see, due to the additional costs and loss of valuable assets, it’s never in your interest, as a bankrupt individual, to have an Insolvency Practitioner appointed to your case. That’s why we strongly recommend you cooperate with the Official Receiver at all times.

Should you reach the stage where your case is handed over to an Insolvency Practitioner, the Official Receiver will provide them with your PIQC booklet and any other information they have gathered after investigating your affairs. Once again, it’s important to remember that providing any false information to either an Official Receiver or an Insolvency Practitioner is counted as a serious crime and could result in further court action being taken against you.

Our aim here at the Assured Capital Group is to stop your case reaching the point of being handed over to an Insolvency Practitioner. This is why we continuously reiterate the importance of being entirely truthful and fully cooperating with your Official Receiver. Remember, your Official Receiver can act as a sole Trustee on your behalf, so there is not always the need for an Insolvency Practitioner to be involved if you are heading towards an annulment. However, if it is deemed that you are being uncooperative, or

there is the belief that your assets are at risk, you could be passed on to an Insolvency Practitioner on the recommendation of the Official Receiver.

What is the role of an Insolvency Practitioner?

This is someone who is licensed and authorised to act in relation to an insolvent individual, partnership or company.

What is the role of an Insolvency Practitioner?
  • They are licensed and legally allowed to act in relation to insolvency
  • They take over from the Official Receiver if you fail to cooperate
  • They have the power to sell your assets to repay your creditors
  • An Insolvency Practitioner typically charges £200 – £500 per hour
Responsibilities of an Insolvency Practitioner

An Insolvency Practitioner has many responsibilities, but pretty much all of them are in the best interests of your creditors. Once they take over your case, they must achieve the best possible price for your assets by ensuring exposure to a range of potential buyers. Acting as a Provisional Liquidator, they make sure your creditors receive the highest possible dividend using their sound commercial judgment. An Insolvency Practitioner also has the power to negotiate with your creditors and nominate you for an Individual Voluntary Arrangement. They will, of course, supervise this arrangement while running all creditor meetings as a chairperson.