What is a Licensed Insolvency Practitioner in the UK?

A licensed insolvency practitioner can also work under the title of liquidator, administrator, an administrative receiver or as a nominee (supervisor) in a voluntary arrangement.

• Liquidator – the IP facilitates the liquidation, i.e. the closing down, of an insolvency company or partnership. This will involve the sale and distribution to creditors of any assets, deal with any outstanding claims, liaise and report to creditors, and investigate the activities of the directors. At all times, the liquidator is acting on behalf of the creditors, not the directors. 
  
  
• Administrator – in their role, they will analyse the company’s situation in order to find the best solution for the creditors. This may involve re-structuring the company, streamline procedures, cut costs or source a buyer for the company. 

• Administrative receiver – similar to the above role, however the IP is working on behalf of a secured creditor, such as a bank, with the aim of getting the creditor’s debt paid in full. 

• Nominee (supervisor) – the IP’s role in this case is acting as a supervisor in a company or individual voluntary arrangement. They negotiate between the two parties to agree a structured payment plan. The IP formalises the agreement with the creditors. The agreed payment is paid by the debtor through the IP who then distributes it to the creditor. In many cases, there may be several creditors although the debtor only makes one payment to the IP. It is the IP’s role to ensure that all the relevant creditors are paid the right amount from the debtor’s one-off payment.