Simply put, a licensed insolvency practitioner is someone licensed to help businesses and individuals manage financial issues—whether that’s dealing with insolvency or closing down a company that’s still solvent.
They step in when things get tough, guiding companies through financial difficulties, as well as handling the solvent liquidation process, Members’ Voluntary Liquidation (MVL). Their job in all cases is to make sure everything is above board, legally compliant and financially sound.
Many licensed insolvency practitioners have backgrounds in accountancy or law, which equips them to handle the complex legal and financial issues that arise. They undergo rigorous training and are held to high professional standards to maintain their licence. Their expertise lies in navigating financial difficulties, managing business restructures, and ensuring directors meet their legal responsibilities.
Speak to our licensed insolvency practitioners about your business today, for expert advice on your unique situation.
What does a licensed insolvency practitioner do?
Providing expert advice
A licensed insolvency practitioner provides expert advice to business directors considering their next steps. Whether the company is solvent and looking to close via an MVL or facing financial pressures that raise concerns about insolvency, they assess the situation, outline the available options and guide directors towards the most appropriate solution.
Managing insolvency procedures
When dealing with insolvency, licensed insolvency practitioners manage the process from start to finish. They ensure that company assets are properly managed and that creditors’ interests are fairly represented throughout the process.
Handling solvent company closures
For solvent businesses looking to close, licensed insolvency practitioners handle the administrative and legal aspects of the process. In an MVL, they prepare the necessary documentation, oversee the distribution of assets and ensure all legal obligations are met for a smooth and compliant closure.
Supporting business restructuring
In cases where businesses face financial stress but remain viable, licensed insolvency practitioners support restructuring efforts. They work alongside directors to develop recovery plans, negotiate with creditors and implement strategies aimed at stabilising the business and avoiding insolvency whenever possible.
Ensuring legal compliance and asset management
It’s the job of a licensed insolvency practitioner to review the conduct of directors in insolvent situations to confirm that they’ve complied with their legal duties. They manage company assets, whether the business is solvent or insolvent, overseeing their realisation and distribution to creditors or shareholders as appropriate.
Why are licensed insolvency practitioners necessary?
Having a licensed insolvency practitioner on board isn’t just about ticking legal boxes—although they are legally required in all formal insolvency and liquidation processes.
Their job is to make sure everything is done properly, whether you’re closing a healthy business or trying to save one that’s struggling. They help directors navigate complex financial processes without falling into legal pitfalls.
They’re experts in insolvency law, tax and business restructuring, which means they can offer advice that not only solves immediate problems but also helps you plan for the future.
How do you choose the right insolvency practitioner?
Choosing the right person is key. You want someone with experience and a good reputation. Make sure they’re licensed by a professional body, such as the Insolvency Practitioners Association (IPA), and regulated. This guarantees they meet high professional standards.
Transparency is also important. A good firm will be upfront about their fees and the process from the start, so there are no surprises down the line.
Thinking about speaking to a licensed insolvency practitioner?
Whether your business is facing financial difficulties or you’re simply ready to close things down, a licensed insolvency practitioner can help you figure out the best way forward. They’ll explain your options clearly, help you stay compliant with the law, and make sure you get the best possible outcome.
Ready to get started? Contact us today for straightforward, expert advice tailored to your situation.
