Understanding insolvency and insolvency practitioners
Insolvency broadly concerns an inability to pay debts when due or a position where liabilities exceed assets. The appropriate response depends on the facts, jurisdiction and whether the affected person is an individual or a company.
What an insolvency practitioner does
Only an appropriately authorised insolvency practitioner can accept specified formal appointments. An individual firm's profile may describe restructuring, turnaround or advisory work as well as formal insolvency services; those descriptions do not establish that every employee is authorised to act as an office-holder.
Common company procedures
- Administration: a statutory procedure with objectives set by law.
- Liquidation: a process for winding up a company and dealing with its assets.
- Company voluntary arrangement: a binding compromise between a company and creditors when approved.
This guide is general information, not legal, financial or insolvency advice.
If a company or individual is in financial difficulty, seek appropriately qualified advice promptly.
Finding and checking a practitioner
Browse this independent directory, then confirm the individual practitioner and authorising body using the official service.