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There are some fundamental skills and experience that should really look for in an Insolvency Practitioner. These are much like the basic skillset you would want from any professional.
Bear with us, we need to use a bit of industry speak here. Licenced Insolvency Practitioners (I.P.) must have passed the appropriate Joint Insolvency Examination Board (JIEB) exams. This is a benchmark level of competence and will be overseen by a regulatory body such as the chartered accountancy body, (ICEAW).
OK, so that’s all the acronym explanations out of the way, now we can focus on what all that means. To put it in practical terms, to be an I.P. you need to be able to pass the tests set by the appropriate governing bodies and show you can look after a client during insolvency. If you are getting advice from someone who is not licenced, then please be very wary.
The insolvency world is a strange mix of fast-moving changes (such as the regulations that rolled out during covid) and long-standing practices and laws. There is a reason it takes a lot of time and effort to become an Insolvency Practitioner. You are dealing with the future financial well-being of real people in often difficult circumstances. It is a complex job that requires knowledge. By the time even the most inexperienced of new I.P.s qualify they will have demonstrated that have all the important core knowledge required to do the job. There is a lot to be said for experience as well. Being an I.P. is a long-term commitment and over the years you get to know a lot about how the world works when it comes to things like dealing with HMRC or potentially upset creditors.
It goes without saying that an Insolvency Practitioner should be well versed in the laws surrounding financial matters. This is a pretty broad spectrum of legislation and guidance from personal bankruptcy through to corporate law and everything in between and around. However, understanding and real work application are sometimes two different things. A good IP will not only understand the law they will have a sound knowledge of what running a business is actually about to put it into perspective. Anyone who has ever been responsible for a company will tell you that what you expect and what can happen are sometimes very different. That is why I.P.s should ideally know what being in business is really all about.
When you consult an I.P. it isn’t unreasonable to expect them to be able to empathise with your situation. There is more to life than the numbers, the laws and the paperwork. Behind all that process are actual people who deserve empathy and understanding. That doesn’t mean that the I.P. will let that empathy affect how efficiently they perform their duties though. A really good I.P. knows that ultimately the best result for everyone will be an efficient, professional, impartial and above all else, practical solution to the situation. Empathy and practicality should go hand in hand in your consultations to reach a suitable resolution for everyone.
There is no doubt that regardless of the reason for seeing an Insolvency Practitioner (I.P) you are probably going through a bit of an emotional time. Particularly if you are running a business that is going down the insolvency route. Of course, there are many other reasons for seeing an Insolvency Practitioner. They could also be helping you recover your business from financial difficulty, perhaps arranging for a solvent liquidation or working with you on personal bankruptcy for example. Whatever they are helping you deal with though, there is going to be an amount of personal pressure as well to deal with as well as all the technicalities of the situation. Even when you are working together to release equity through a solvent liquidation so you can retire or move on, there is still a lot to get through that will mean a great deal to you personally. Clearly, the best option is to go down that road with an Insolvency Practitioner that you have faith in and that you are happy can handle your situation.
If you are having financial problems, call us or book an appointment to see if we can help. Our promise to you is that we will bring all these qualities to the table to provide the best service possible.
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