Everything you need to know about licensed insolvency practitioners, their role in IVAs, and how to choose the right IP for your situation
An insolvency practitioner (IP) is a licensed professional regulated by government-recognised bodies who specialises in helping individuals and businesses deal with unmanageable debt through formal insolvency procedures.
By law, only a licensed insolvency practitioner can set up and supervise formal debt solutions like Individual Voluntary Arrangements (IVAs) and bankruptcies. You cannot arrange these procedures yourself or through an unlicensed advisor.
Draft your IVA proposal, calculate affordable payments, and submit to creditors
Present your case to creditors and chair the creditors' meeting for approval votes
Collect your monthly payments and distribute funds to creditors fairly
Monitor your IVA for 5 years, handle payment reviews, and manage any changes
Be cautious of insolvency practitioners or debt companies who:
Always verify that your insolvency practitioner is licensed by checking the official Insolvency Service register at gov.uk. Ask for their IP licence number and professional body membership.
Consider getting free, impartial debt advice first from StepChange (0800 138 1111), Citizens Advice, or National Debtline before committing to any paid service.
An insolvency practitioner (IP) is a licensed professional who helps individuals and companies deal with debt they cannot repay. For individuals, IPs can propose and supervise IVAs, act as trustees in bankruptcy, and provide advice on formal debt solutions. Only licensed IPs can legally set up and supervise formal insolvency procedures.
Search the official register maintained by the Insolvency Service at gov.uk, which lists all licensed IPs in the UK. Look for IPs who are members of recognised professional bodies like R3, the IPA, or ICAEW, and request consultations from 2-3 different IPs to compare advice and costs. Check their experience, fee structure, and ensure they're FCA-regulated if providing debt advice.
In an IVA, the insolvency practitioner's fees come from your monthly IVA payments, not as a separate charge. Typically, your first few monthly payments go entirely towards the IP's setup fees and ongoing supervision costs, then remaining payments go to your creditors. You never pay the IP directly - their fees (usually £3,000-£5,000 total) are built into your monthly contribution.
Yes, by law you must use a licensed insolvency practitioner to set up and supervise an Individual Voluntary Arrangement. The IP is responsible for proposing your IVA to creditors, distributing payments, and supervising the arrangement for its full duration (typically 5 years). This legal requirement exists to protect both you and your creditors through professional and fair management.
Insolvency practitioners must be licensed by recognised professional bodies including the IPA, ICAEW, ICAS, or CAI. The Insolvency Service oversees these bodies and maintains a public register of all licensed IPs. IPs must meet strict educational requirements, pass examinations, maintain professional indemnity insurance, and undergo regular monitoring and inspections.
To become a licensed IP, individuals must hold a recognised insolvency qualification such as the JIEB qualification, which includes multiple examinations covering insolvency law, ethics, and procedures. They must complete several years of practical insolvency experience working under a licensed IP and demonstrate good character and financial standing. Once licensed, IPs must complete annual CPD to maintain their licence.
Yes, you have the right to choose which IP handles your case for voluntary procedures like an IVA. It's recommended to consult with 2-3 different IPs before deciding, as fees, approach, and experience can vary significantly. Consider their experience with similar cases, fee structure, communication style, and be cautious of IPs who pressure you into signing immediately.
An insolvency practitioner (IP) is a licensed professional who can legally set up and supervise formal insolvency procedures like IVAs and bankruptcies. A debt advisor provides advice about different debt solutions but cannot set up formal insolvency procedures themselves - they can only refer you to an IP if needed. Free debt advisors at services like StepChange and Citizens Advice provide impartial guidance on all debt options.
Before choosing an insolvency practitioner, get free, impartial advice to understand all your options. Our FCA-regulated advisors can help you determine the best solution for your situation.
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