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Legal 172 views Jan 22, 2020
Insolvency Practitioners- What does it mean?

Are you familiar with the term “Insolvency Practitioner”? Well, an Insolvency Practitioner is nothing but a person who has the license and the authorization to work in the context of an insolvent individual, or an insolvent company, or even an insolvent partnership. The term “insolvent” here means an individual or a firm that has gone bankrupt. So, now let us look into details about Insolvency Practitioners.

 

Can anyone be an Insolvency Practitioner? The answer is no. To be an Insolvency Practitioner, the individual must pass the insolvency examinations and should also have some past insolvency experience. Moreover, a recommendation from an authorized organization is needed to ensure the role of an individual as a reliable Insolvency Practitioner.

 

Insolvency Practitioners are more like lawyers or counselors in case of bankruptcy; hence, they need to strictly follow the law. To utter astonishment of many, they are constantly monitored by regulators to make sure that they do their job in the correct order that fits the requirements. 

 

The job description of an insolvency practitioner is not that simple. The main objective for their roles is to find a solution in a very difficult situation, especially when a firm has gone bankrupt or when an individual is under great debt that he is not being able to repay.

 

An IP acts as an intermediary and is a representative of the debtor, who bargains with the creditor as a negotiator.  The IP ensures that the negotiation is maintained, and the debtor needs to sell their personal or company assets to repay their debts.

 

IPs' job details might sound easy; however, it is a very complicated job. It is because when they are dealing with negotiations, many misunderstandings arise, and in some cases, individual lodge complaints against them. Hence, they have to be careful about what they say or do when resolving a bankruptcy-related issue.

 

IP is a well-paid white-collar job and a perfect fit for individuals who like challenging situations. So, keeping together all the pros and cons of being a registered Insolvency Practitioner, and knowing the details of an insolvency practitioner, would you want to become one?