{"id":11754,"date":"2011-02-18T16:23:04","date_gmt":"2011-02-18T16:23:04","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=11754"},"modified":"2019-10-21T16:26:53","modified_gmt":"2019-10-21T15:26:53","slug":"insolvency-practitioner","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/insolvency-practitioner\/","title":{"rendered":"Insolvency Practitioner"},"content":{"rendered":"\n

Role of the Insolvency Practitioner<\/h2>\n\n\n\n

The work of an insolvency practitioner (IP) is much like that of the \ndentist. You expect your dentist to examine your teeth (and gums), to \nexplain what needs to be attended to, to outline what treatments are \navailable, to quote for the cost of each alternative treatment and to \noutline how long each course of action will take.<\/p>\n\n\n\n

The IP must treat the debtor coming with a financial problem in much the same way: examine your financial circumstances, set out what needs to be addressed, explain what options are available and outline the cost, duration and effects of each course of action. <\/p>\n\n\n\n\n\n\n\n

The need for treatment is usually clear and sometimes urgent, it may involve some pain but generally the patient (debtor) can truthfully say afterwards \u2013 \u201cI\u2019m glad I did that\u201d. The debtor is not the only one in need of treatment and counseling. Various third parties are affected by the insolvency operation which the debtor undergoes.<\/p>\n\n\n\n

\"Insolvency<\/figure>\n\n\n\n

These include the debtor\u2019s spouse or partner and dependents and of course the creditors. Creditors often have an inadequate understanding of the role of the IP and may see him or her as an adversary to be confronted rather than as an honest broker to be consulted in maximizing the return to creditors while returning the debtor to full financial health.<\/p>\n\n\n\n

How creditors can gain from working with the Insolvency Practitioners <\/h2>\n\n\n\n

There is a statutory obligation on the IP to advise the insolvent \ndebtor and to outline all available options in the process of choosing a\n solution but ultimately it is the debtor\u2019s decision which route to \ntake. The role of creditors differs depending on the solution being \nproposed but creditors have a major influence on the outcome. They can \nfor example vote to accept or reject a debtor\u2019s IVA proposal, if that is\n the solution selected by the debtor. The various rights that creditors \nmay exercise obviously depend on whether the insolvency process is \npersonal or corporate and such rights are subject to the laws and \nregulations governing the particular process. Generally speaking \ncreditors can:<\/p>\n\n\n\n

  • remove an IP<\/li>
  • appoint an IP in whom they have absolute confidence<\/li>
  • cap or restrict fees charged by the IP<\/li>
  • influence the fees being charged by an IP in a particular case and question the fees if they feel they are disproportionate<\/li>
  • attend meetings and vote on proposals. Such rights apply to corporate as well as personal insolvency processes<\/li>
  • increase the contributions to be made by the debtor<\/li>
  • insist on the sale of assets<\/li>
  • request that the equity in the debtor\u2019s property be released<\/li>
  • assist the IP by providing relevant information on the insolvent person or entity<\/li>
  • furnish proofs of debts<\/li>
  • help the IP to establish the whereabouts and identification of assets of the insolvent estate<\/li>
  • verify the historic trading relationship they have had with the debtor<\/li>
  • clarify their expected future trading relationship, if the debtor is to continue trading<\/li>
  • form and participate in creditors committees<\/li>
  • seek to increase the dividend on offer to creditors without jeopardizing the arrangement<\/li><\/ul>\n\n\n\n

    Having a positive business relationship with the IP should result in win\/win for creditors, debtor and IP alike. The chart below summarises the four principal solutions used to address personal insolvency problems in the UK and the main pros and cons of each of them.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The IP will examine your financial circumstances, set out what needs to be addressed, explain what options are available and outline the cost, duration and effects of each course of action. <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[6],"tags":[],"class_list":["post-11754","post","type-post","status-publish","format-standard","hentry","category-general-debt-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=11754"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11754\/revisions"}],"predecessor-version":[{"id":11760,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/11754\/revisions\/11760"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=11754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=11754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=11754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}