Role of The Insolvency Practitioner

In preparing a proposal for an Individual Voluntary Agreement, you will need to use an Insolvency Practitioner or IP. So who or what exactly is an Insolvency Practitioner? Simply put, an Insolvency Practitioner is an accountant specializing in insolvency services.

Insolvency Practitioners, or IPs, are usually accountants who go through rigorous exams on insolvency that once passed, will allow them to provide any type of service related to insolvency be it corporate, personal, company liquidations, personal bankruptcies, or Individual Voluntary Arrangements.
An Insolvency Practitioner generally chooses a field he wishes to specialize in, in the case of IPs working on Individual Voluntary Agreements or IVAs, these IPs are practicing in the sector known as personal insolvency.

Most organizations that offer help with Debt & IVAs employ a dedicated Insolvency Practitioner. The IP assigned to assist in your IVA will help you through the entire process, starting from creating the proposal itself to making sure you meet the required items previously agreed on your IVA.

Approaching the Insolvency Practitioner

When you approach an IP for help, they will be acting on your behalf throughout the process. The IP will put together the required documents, details, and personal profiles to draft your IVA proposal.

Once your IVA proposal has been drafted, the IP will arrange for a Creditors Meeting this meeting will be held to forward your proposal to your creditors. If 75% of your creditors agree to the terms on your IVA, the IVA will be put into action.

Insolvency Practitioner Supervisory Role

Once the IVA has been approved, the IP will then start working as the IVA supervisor and administrator, and works on behalf of your creditors.
The IP will then make sure the terms agreed upon on the IVA are met.
Your payments and financial status will be checked to make sure the IVA is on target; and if any problems arise, the IP will report directly to the creditors regarding any issue.
The Insolvency Practitioner will also be responsible for collecting money into the bank account set up for your IVA as well as paying the money to the creditors once it has been collected.

In a nutshell, the IP has two roles in the entire IVA process: as a nominee, working on behalf of the debtor; and as a supervisor, working on behalf of the creditors.