The Role Of The Insolvency Practitioner

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What is The Role Of The Insolvency Practitioner?

The Insolvency Practitioner has one of the most important roles in the Trust Deed process. They are a qualified accountant that specialises in insolvency law.

They are highly qualified professionals with a deep understanding of the financial laws relating to insolvency and have undertaken key exams to gain a license to practice their services.

Sometimes you find an IP who is a trained solicitor and has undertaken the accountancy side of things later, but usually it is the other way around.

What Do They Do?

Complete The Complex Paperwork And Court Proceedings

Trust Deeds can only be administered by a licensed IP, so anyone wanting to get a formal arrangement must go through them. It’s a complex process full of legal pitfalls and because Trust Deeds are deeply entwined with Insolvency laws, only qualified and appropriately licensed people can do the work involved.

Nominate You For A Trust Deed in Scotland

After establishing that you qualify, your IP will start the proceedings to put you forward or ‘nominate’ you for the solution.

In a similar way to how an IVA (Individual Voluntary Arrangement) works, this involves pulling together all your financial paperwork and other documents, which may involve speaking to your creditors to obtain the information required and drafting a proposal/draft agreement for your creditors to consider.

Once this is done, your IP contacts your creditors, circulates the proposal and then discusses the proposal.

Represent Your Interests To Your Creditors

There’s no doubt that an IP must be a skilled negotiator if they are to persuade a number of your creditors to accept an offer to pay off a substantially reduced debt level over four years.

Supervise The Trust Deed

If the Trust Deed gets the green light, the IP then moves into another role – that of supervising your case as it progresses. Here their focus is making sure the needs of the creditors are met and you adhere to the conditions of the agreement that you made with them. The IP will:

• Ensure your payments are collected from you on time and that your creditors receive their payments on time.
• Undertake annual reviews of your finances and any adjustments needed to keep it on course are made – your annual salary may increase or decrease or there may be bonuses or profit-share dividends.
• Undertake an assessment of your assets and arrange the valuation and sale of them if needed.
• Protect you from your creditors and ensure that you do not need to speak to them again.
• Ensure all the proper paperwork with your creditors and the Insolvency Service is in order at the end of the Trust Deed term, and dispense a discharge certificate

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