An IP, or an Insolvency Practitioner, is a professional who specialises in the field of Insolvency. All IPs in the UK are required to be licensed, and to conform to a set of professional standards. The practise is regulated by the Insolvency Practitioners Association, who also set out the required standards.
Most IPs come from some other professional background, such as law or accounting, before specialising in insolvency matters. Many of the processes involved in insolvency are carried out within rigorous legal frameworks, and can only be processed by those professionals licensed with this specialty.
Debt Advice
As well as having the ability to carry out certain professional and legal duties, IPs are also able to give excellent debt advice to people with serious financial difficulties. If you find yourself in a position where you are no longer in control of your finances and cannot meet your financial commitments, an IP can advise you as to what your options are.
Other Choices
Many people assume that if they can’t meet their debt payments that the consequence will necessarily be bankruptcy, but this is often not the case. There are a number of other avenues you can explore before reaching that point, and an IP can help you to navigate these confusing options.
Overview
An IP will take into account your overall situation, from your income and outgoings, through to your assets, and of course your debts. Bearing in mind all of these factors, an IP will give you an overview of what options you have, and in many cases will be able to help you to take these forward.
Your IP may suggest a number of different things to sort out your finances, for example the sale of assets, many of which may give you the breathing space you need to get back on track.
IVA
One of the options that you may end up exploring is an Individual Voluntary Arrangement. Whether or not this is right for you will depend on the circumstances of your own case, and an IP will help you to make this type of decision.
If you do end up going down the route of an IVA, your IP will assist you in working out a proposal and will then present this to your creditors through the legal system. In many circumstances, an IVA can help people who feel they have fewer and fewer options to get their finances back under control, and avoid bankruptcy.