Insolvency practitioner - Definition and Overview

Insolvency Practitioner .noun. A person who practices in insolvency.

In the United Kingdom this is a regulated profession under the Insolvency Act 1986 and anyone who wishes to practice as an Insolvency Practitioner needs to hold an Insolvency Licence. Such licences can be issued by any of the following Recognised Professional Bodies:

• Insolvency Practitioners Association
• Institute of Chartered Accountants in England & Wales
• Institute of Chartered Accountants in Ireland
• Institute of Chartered Accountants in Scotland
• The Law Society
• The Law Society of Northern Ireland
• The Law Society of Scotland
• The Chartered Association of Certified Accountants

Licences are now only issued upon satisfactory completion of a professional examination held by the Joint Insolvency Examination Board.

There are currently about 1,700 Licensed Practitioners in the United Kingdom, not all of whom take appointments – many lawyers hold licences but do not use them to take appointments, preferring to advise other practitioners.

Any of the following types of formal insolvency procedure must be dealt with a Licensed Insolvency Practitioner:

• Bankruptcy
• Liquidations
• Individual Voluntary Arrangements
• Company Voluntary Arrangements
• Administrations
• Administrative Receiverships
• Deeds of Arrangement