What does an Insolvency Practitioner do?
In the UK, an Insolvency Practitioner (IP) is needed to put a company or individual through legally insolvency procedures, when they are unable to pay debts on time. Procedures includes CVAs, CVLs, pre-pack administrations and insolvent liquidations. Insolvency Practitioner are regulated and inspected by a government body. At Lucas Johnson, our Insolvency Practitioners can also provide company directors with advice on the best course of action in their situation.
How does someone become an Insolvency Practitioner?
To become an Insolvency Practitioner in the UK, a candidate needs to pass all 3 of the Joint Insolvency Examination Board papers which rigorously test candidates’ knowledge of insolvency law. The exam is held yearly, takes 3.5 hours and is known to be notoriously taxing. It is recommended that exams are not taken without at least 3 years practical insolvency experience covering all areas. Once passing the exam, the individual must meet the authorising body’s requirements before receiving a licence.
How should I pick an Insolvency Practitioner?
It is important to find a licensed Insolvency Practitioner such as Lucas Johnson. The websites of some firms may falsely imply they are licensed, with some even showing the logos of governing bodies without any actual connection to them. To be sure you are dealing with a legitimate practitioner; you can check the ICAEW’s online directory of chartered accountants and insolvency practitioners.
You will also have other considerations, such as the experience of your insolvency practitioner and cost. We aim to ensure Lucas Johnson is the best choice for any company facing insolvency. Please see our home page for some reasons why we think Lucas Johnson is the right insolvency firm for you.
Do I need to pay to get advice from an Insolvency Practitioner?
No. While some insolvency practitioners will charge for a consultation, at Lucas Johnson we are happy to talk with you and can provide all the information you need to make a decision on how to best deal with your situation. Calling us for an informal and confidential discussion about your situation, can put your mind at ease about how to proceed.
How much do Insolvency Practitioners charge?
It may not cost you a penny! Advice from Lucas Johnson is always free and procedures might not cost you anything either.
Fees vary depending on the Insolvency Practitioner, the situation of your business and the procedure you wish to carry out. At Lucas Johnson, we aim to make the cost to directors as low as possible. We can do this by selling assets to pay for our already low costs. Even if you do not have assets of much value or do not wish to sell them, it is worth calling to see what other ways we can cover the costs for you.
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