What Does an Insolvency Practitioner Do?

In a society where there is debt & lending, there will be defaults & insolvencies. The role of the insolvency practitioner is to deal with these companies & individuals who are insolvent, hopefully returning them to solvency but failing that, concluding their affairs in an orderly way.

Insolvency practitioner scotland are regulated by their professional body. This includes the ICAEW, IPA, ACCA & SRA and all are required to adhere to a code of practice. They are also subject to regular inspections from their regulatory bodies. These typically take place over a number of days during which a selection of their cases are thoroughly assessed and recommendations for improvement made. If a practitioner’s work falls below the required standard, their licence may be suspended or revoked.

An IP’s duties include:

Licensed insolvency practitioners are required to maintain up-to-date knowledge of insolvency law & regulations. This enables them to provide a high level of service and deliver the best possible outcome for their clients. They must also ensure that their actions are transparent & comply with the law at all times. They must also consider the interests of creditors in each case and promote the maximization of returns to creditors. They must also be fit & proper to be authorised and must pass a series of tests & exams. Insolvency practitioners must also have appropriate professional indemnity insurance in place to cover their activities. They must also make available on request details of their complaints procedure.