A licensed insolvency practitioner not only liquidates failed companies, he also rescues struggling businesses and saves jobs. In fact insolvency practitioners tend to prefer to associate themselves with the whole culture of rescue, recovery and turnaround rather than be known as corporate undertakers.
If you are looking for help with a failing business, whether it be a limited company or a small sole trader business, you need to bear in mind the kind of help you need. This is why choosing insolvency practitioners Liverpool carefully is crucial. Some specialise in personal insolvency and act as trustee in bankruptcy or supervisor of an Individual Voluntary Arrangement (IVA). Others spend most of their time liquidating small to medium sized limited companies whilst others focus on helping struggling companies to turnaround their fortunes and get back into profit.
Your insolvency practitioner needs to be licensed. This is a formal legal requirement as per the Insolvency Act 1986. Licenses are issued by professional bodies and unlike other professions where there may only be one professional licensing body, insolvency has a number of different bodies authorised to issue licenses to insolvency practitioners. The following are the main bodies who issue such licenses:
Insolvency Practitioners Association
Association of Chartered Certified Accountants
Institute of Chartered Accountants in England and Wales
Institute of Chartered Accountants of Scotland
Presently, licenses cover both personal and corporate insolvency allowing all license holders to deal with insolvency procedures for both companies and individuals. The situation is in the process of change and separate licenses will be issued enabling insolvency practitioners to specialise in either corporate or personal insolvency.
Insolvency practitioners Liverpool (IPs) in the UK are often qualified accountants. Indeed, you will see from the licensing section above that the professional accounting bodies issue licenses to act as insolvency practitioners. Insolvency procedures are strictly driven by law and it is not uncommon for solicitors to qualify as licensed insolvency practitioners as well. Therefore most IPs have some prior professional training, experience and qualifications in accounting or law prior to entering the insolvency profession. That is not a prerequisite though and many Ips specialise in insolvency right from the start of their working lives.
Qualifying as an IP
It is necessary to pass a set of professional examinations and have a certain number of hours working in the profession before you can be issued with a license. Presently 3 exams must be passed as follows:
Administrations, Company Voluntary Arrangements (CVAs) and Receiverships
The examinations are notoriously difficult and widely considered amongst the most difficult professional examinations of all.
Presently, aspiring IPs must pass all 3 examinations. In the future the exam structure will change a little to suit the needs of people who wish to specialise in personal insolvency or corporate insolvency.
The best Insolvency Practitioner for you
It is suggested you choose your IP carefully and make sure that they have the requisite level of experience suited to your needs. A personal insolvency specialist, for example, will not be the best choice if you need to liquidate your company. Don’t be afraid to ask the IP whether he has dealt with a similar situation to yours before so that you know you are in the right hands.