In the UK, an insolvency practitioner (IP) is someone who is qualifiedby the courts to act in accordance with formal cases of individual orbusiness insolvency and also to give advice on such matters.
They oftenhave backgrounds in accounting or the like, although it is notcompulsory.
In general, an IP is somebody that you never want to meet.
Doing somost likely implies that you are in a severe state of indebtedness.
Underthe laws of the UK, Licensed Insolvency Practitioners are responsiblefor dealing with any and all of the following types of situations:bankruptcy, liquidations, individual voluntary arrangements, companyvoluntary arrangements, fast track voluntary arrangements, administrations,administrative receiverships and deeds of arrangement.
The most common use for an IP in the UK are IVA's or IndividualVoluntary Arrangements.
When an individual is considering bankruptcy orpersonal insolvency, they may instead elect to enter into an IVA situationwith their creditors.
This means that, with the guidance of an IP, theindividual is afforded the opportunity to repay debts to creditors at adiscounted monthly payment schedule.
The majority of the creditors mustagree to the plan and it must be adhered to diligently.
Throughout the course of repayment, the IP is the individual's contactand financial confidant.
The individual is responsible to honestlyreport all assets and liabilities to the IP.
The IP then determines paymentscheduling and resource allocation.
If you feel that you are about to meet an IP in your life, stop andthink first.
Think hard.
Careful analysis of your personal financialscheme can often rectify the situation before an IP becomes necessary.
Tryto develop a new financial plan for your life.
Try communicating withyour creditors before it goes any further.
Today is when to start.
Onceyou have made the decision to involve an IP in your affairs, lifechanges and you are no longer in control.