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Important Roles Undertaken By Insolvency Practitioner

A licensed insolvency practitioner, or IP, is a legal professional that is qualified and registered to act on behalf of a company, partnership or individual that is insolvent, or for a solvent company or partnership that wants to cease trading and close down.

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Important Roles Undertaken By Insolvency Practitioner

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  1. Important Roles Undertaken By Insolvency Practitioner Presented by Simple Liquidation

  2. QUICK OVERVIEW If you or your company is struggling with debt, to the point that monies coming in no longer cover monies going out and creditors are demanding payment, you need to seek the help of insolvency practitioner services. Some of their responsibilities and roles are stated in the following slides.

  3. 1 Administrator The insolvency practitioner will take control of the day-to-day activities and operations. The insolvency practitioner will present a proposal to the creditors with options for rescuing the company from liquidation. insolvency practitioner will recommend a pre-pack administration whereby the company’s directors and shareholders can purchase assets, or the company itself, to trade as a new company. Sometimes, the

  4. 2 Liquidator The insolvency practitioner acts as the liquidator and takes control of the company’s assets, which are sold at market value, and the monies raised are distributed to the creditors on a predetermined basis according to the Insolvency Act 1986.

  5. 3 Administrative Receiver A secured floating charge creditor, such as a bank, is entitled to instruct an insolvency practitioner to act as an administrative receiver on their behalf to recover money owed to them. They do not have any duty to any other creditors; they are only to realize specific assets in order to pay the secured floating charge creditor.

  6. 4 Supervisor in a Voluntary Arrangement When a company enters into a CVA, an insolvency practitioner acts as the supervisor. They make sure the agreed monthly payments are distributed to the creditors in accordance with the CVA’s terms. They also act in this way for Individual Voluntary Arrangements, the only difference being they are dealing with an individual and not a company.

  7. Company or individual insolvency is not something that anyone wants to deal with; however, the sooner a financial problem is recognized, the sooner it can be dealt with and the more potential the company has in recovering. If you are struggling with debt, contact Simple Liquidation for assistance. New Broad Street House, 35 New Broad Street, London www.simpleliquidation.co.uk 0800 246 5895

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