Glossary · UK
What is Insolvency Practitioner?
A licensed professional authorised to administer formal insolvency procedures for individuals and companies in the UK.
Full Definition
An insolvency practitioner (IP) is a licensed and regulated professional - usually an accountant or solicitor - authorised to act in formal insolvency procedures. For individuals, an IP may supervise an Individual Voluntary Arrangement (IVA) or act as trustee in bankruptcy. For companies, an IP can act as administrator, liquidator, or supervisor of a Company Voluntary Arrangement (CVA). They must hold a licence from a recognised professional body and are bound by statutory duties to act in creditors' interests, realise assets, and distribute funds according to the legal order of priority. IPs charge fees, typically drawn from the estate, which require creditor or court approval. Engaging an IP is required for most formal procedures; informal options such as a Debt Management Plan or a Debt Relief Order do not need one. Choosing the right route - and a properly licensed IP - matters because the wrong procedure can be costly and damage credit standing for years.