In the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

, only an authorised or licensed insolvency practitioner (IP) may be appointed in relation to formal

insolvency In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet i ...

procedures. Quite often IPs have an

accountancy Accounting, also known as accountancy, is the process of recording and processing information about economic entities, such as businesses and corporations. Accounting measures the results of an organization's economic activities and conveys ...

background. A few active practitioners are

lawyer A lawyer is a person who is qualified to offer advice about the law, draft legal documents, or represent individuals in legal matters. The exact nature of a lawyer's work varies depending on the legal jurisdiction and the legal system, as w ...

s, but it is not necessary to be qualified as either, as since 1986 there has been a direct entry route to the profession.

Insolvency is a regulated profession

In the UK, only a licensed insolvency practitioner can be appointed in relation to formal insolvency procedures for individuals and businesses. Insolvency practitioners are licensed to advise on, and undertake appointments in, all formal insolvency procedures. In the UK, insolvency practitioners are subject to oversight and inspection by their recognised professional body. Insolvency is a regulated profession under the

Insolvency Act 1986 The Insolvency Act 1986 (c. 45) is an act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK. History The Insolvency Act 1986 followed the publication ...

and anyone who wishes to practise as an IP needs to pass the JIEB exams; a set of three examination papers set by the Joint Insolvency Examination Board (JIEB). The exams are held once a year, usually in November, and each last 3.5 hours. Once the exams have been passed, it is necessary to meet the authorising body's insolvency experience requirements. Licences are issued by the following recognised professional bodies: * Insolvency Practitioners Association * Institute of Chartered Accountants in England & Wales * Institute of Chartered Accountants of Scotland As a "competent authority" under the

, the Secretary of State for Business and Trade (DBT) – and, for Northern Ireland, the Department of Enterprise, Trade and Investment – also authorises IPs. The Insolvency Service, an executive agency of DBT, oversees insolvency regulation in Great Britain and each authorising body is represented on the Joint Insolvency Committee, which aims to develop and maintain insolvency standards and best practice guidance, largely by means of Statements of Insolvency Practice (SIPs).Joint Insolvency Committee Annual Report 2006
There are currently around 1,500 licensed insolvency practitioners in the United Kingdom, not all of whom take appointments – various lawyers hold licences but rarely use them to take appointments, preferring to advise other practitioners.

Trade body

The Association of Business Recovery Professionals, is the leading professional association for insolvency, business recovery and turnaround specialists in the UK. Known by its brand name ‘R3’, it promotes best practice for professionals working with financially troubled individuals and businesses.

Procedures requiring an insolvency practitioner

Under UK law, unless an official receiver already holds office, the following types of formal insolvency procedure must be dealt with by a licensed insolvency practitioner: * Administrations * Administrative receiverships *

Bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...

* Company voluntary arrangements * Compulsory liquidations * Creditors' voluntary liquidations * Deeds of arrangement *

Individual voluntary arrangement An individual voluntary arrangement (IVA) is a formal alternative in England and Wales for individuals wishing to avoid bankruptcy in England and Wales, bankruptcy. In Scotland, the equivalent statutory debt solution is known as a protected tr ...

s * Lump-sum IVAs * Section 110 reconstruction * Members' voluntary liquidations * Protected trust deeds (only available in Scotland)

References

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External links

Trade body for Insolvency Practitioners

Insolvency Service website

Insolvency Practitioners Association website

Online Study Support & Discussion Forum for the JIEB exams

Insolvency News

Licensed Insolvency Practitioner Finder
Finance occupations Legal professions Insolvency law of the United Kingdom

Insolvency is a regulated profession

Trade body

Procedures requiring an insolvency practitioner

See also

References

External links