WHAT IS AN INSOLVENCY PRACTITIONER (IP)?

28th April

An IP is an individual who is licenced by a regulatory body to accept formal insolvency appointments and offer debt and restructuring advice. IPs work with both businesses and individuals, reviewing their circumstances and offering specialist advice on the best way to move forward.

An IP is required to be licenced by one of the following Recognised Professional Bodies:
• Insolvency Practitioners Association (IPA)
• Institute of Chartered Accountants in Scotland (ICAS)
• Institute of Chartered Accountants of England and Wales (ICAEW)
• Institute of Chartered Accountants in Ireland (ICAI)

To progress with a formal insolvency solution such as a Liquidation, Administration, CVA, Sequestration or Trust Deed, a licenced IP must be appointed. When looking for an IP, the government site ‘Find an Insolvency Practitioner’ allows you to filter by name, company and location. In addition, ICAS also offer a search function of their members on their website. Utilising either of these tools will ensure that you select an IP who is licenced and has the appropriate knowledge and expertise to assist you.

Why use an IP?
Good quality IPs have extensive business experience and are very solutions driven. They very quickly assess the financial position of a business or individual, including all positive and negative aspects. These are then considered to determine options and solutions that can be progressed. They will explain and set these out with a recommendation of what may suit the circumstance. Each case is different and may have various options and stages.

Using an IP can support you to:
– Assess and refinance existing debt
– Negotiate time to pay settlements
– Identify any assets you may wish to sell to settle some debt or use as collateral for additional borrowing/maximise your future return
– Ensure you have a robust financial platform to move forward
– Show you how to access a formal debt solution where this is required as a remedy explaining the benefits and impact

At Dunedin Advisory, our IPs support many healthy businesses with strategic and business growth advice helping shareholders maximise their returns. We work closely with other professional organisations, qualified accountants, lawyers, banks and institutions and can sign post you to many areas for additional support at differing times in your forward financial planning. Our work is not all related to financial stress.
When difficulties do arise, we support individuals and businesses with solutions that avoid formal insolvencies. We only recommend formal insolvency as a last resort having explored all other options.

We recommend working with an IP at a very early stage in considering financial options and plans. This ensures you keep control and prevents steps being forced upon you which can be time consuming and costly.

What does it cost?

Generally, an IP will charge for their services on a ‘time and line’ or ‘fixed fee’ basis. Depending on the advice sought and the solution proposed, an indication of cost should be discussed in advance. We offer a free initial, no obligation consultation to ascertain your current situation and discuss the options available.

When should I contact an IP?
Are you looking for advice, wish to exit your business with maximum return, need to restructure your existing finances, struggling with debt or simply unsure whether you can continue as you are in the current climate?

It is never too early to get in touch.

One of our licenced Insolvency Practitioners can help. Contact Christine Convy [email protected] or Angela Paterson [email protected] for a free initial consultation. Tel: (01592) 630085 or (01382) 250695 www.dunedinadvisory.com

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