What is an Insolvency Practitioner, and How Does It Differ from a Liquidator

1. What is an Insolvency Practitioner, and How Does It Differ from a Liquidator? An insolvency practitioner (IP) is a licensed professional who specializes in helping individuals or companies deal with insolvency and financial difficulties. They are appointed to oversee the management of the assets of the insolvent individual or company and to help ensure that creditors are paid as much as possible. Insolvency practitioners may be appointed in a variety of situations, such as when an individual or company is declared bankrupt, enters into voluntary arrangements with their creditors, or when a company enters administration. Insolvency practitioners are regulated by professional bodies and must meet certain standards of competency and conduct. They may be accountants, lawyers, or other professionals who have undergone specialized training in insolvency. On the other hand, a liquidator is a type of insolvency practitioner who is specifically appointed to wind up a company that is insolvent. They are responsible for selling off the company's assets and distributing the proceeds to creditors in accordance with the law. In general, insolvency practitioners work to help individuals or companies manage their financial difficulties, while liquidators are specifically tasked with winding up the affairs of an insolvent company. However, there may be some overlap between the roles of an insolvency practitioner and a liquidator depending on the specific circumstances of the insolvency case. Read everything about it on the Leading UK Website.