How to Find and Choose a Licensed Insolvency Practitioner

If your company is heading for insolvency, the person who guides you through it is a licensed insolvency practitioner (IP). Only a licensed IP can take formal appointments like liquidator or administrator, so choosing the right one matters. This guide explains what they do, how they're regulated, and how to pick a good one.

What an insolvency practitioner does

An IP is a qualified, regulated professional authorised to act in formal insolvency procedures. Depending on the case, the same person might act as:

• Liquidator in a CVL, MVL or compulsory liquidation;
• Administrator in an administration;
• Supervisor of a CVA;
• Trustee in a personal bankruptcy or IVA.

Their legal duty is to act for the creditors as a whole (and, in a rescue, to try to save the business) — not solely for the directors who appointed them.

How IPs are regulated

Insolvency practitioners are tightly regulated. To act, an individual must be licensed by a recognised professional body — for example the ICAEW, the Insolvency Practitioners Association (IPA), or another recognised regulator. The whole system is overseen by the Insolvency Service. IPs must follow Statements of Insolvency Practice (SIPs) — for instance SIP 16 governs pre-pack disclosure — and carry professional indemnity insurance and a bond.

How to check someone is genuinely licensed

Before appointing anyone, verify their credentials:

• Ask which regulatory body licenses them and for their IP number.
• Use the Insolvency Service's tool to find and check an authorised insolvency practitioner.
• Be wary of unregulated "advisers" or lead-generators who are not licensed IPs — they can't take appointments and may just be selling your details on.

Questions to ask before you appoint

1. Are you personally licensed, and by whom? You want the named individual's authorisation, not just a firm's brand.
2. What are the realistic options? A good IP explains the alternatives — rescue, CVA, administration or liquidation — not just the one that suits them.
3. How and when are your fees charged, and who approves them? Fees must be approved by creditors and clearly disclosed.
4. What will happen to staff, and to me as a director? They should explain redundancy claims and your conduct report obligations.
5. Do you have experience in my sector and situation? Retail, construction and professional services can raise different issues.

Watch for conflicts and warning signs

• An adviser who pushes one outcome regardless of the facts.
• Pressure to act immediately without explaining alternatives.
• Vague or evasive answers about fees.
• Anyone who isn't a licensed IP offering to "handle the insolvency" for you.

Directors: act early

The earlier you involve a licensed IP, the more options remain on the table — and the lower the risk of wrongful trading or other personal exposure. Waiting until a winding-up petition lands narrows the choices dramatically.

Research the market first

Every liquidator and administrator named on Insolvency List is a licensed IP taking real appointments. Browsing recent cases in your industry or region is a useful way to see which practitioners are active in situations like yours before you make contact.

*This article is general information, not legal or financial advice. Always verify an insolvency practitioner's licence and take advice specific to your circumstances.*