Practitioners being licensed every year.

Both revised legislation and a change in the way people think have led to the

Trend of rescuing businesses.

Once a practitioner has been licensed by one of the recognised professional

Bodies, this license cannot be cancelled.

Unit14 Debtor-creditor E

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Insolvency is possibly the most demanding career option a professional can undertake. It is

Certainly one of the most challenging, involving and rewarding. The insolvency profession is also

One of the smallest- there are fewer than 2,000 licensed insolvency practitioners in the UK.

Insolvency practitioners can find themselves running businesses, constructing and negotiating

Deals, or investigating and advising on the viability of a business and its restructuring (and,

Sometimes, the Integrity of its directors).

The work of the insolvency practitioner affects the lives, prospects and livelihoods of both

Creditors and debtors. Insolvency work is as much about people as it is about figures.

Insolvency practitioners need the personality and skills to deal with angry creditors, anxious

Directors, distraught employees and, amongst others, hard-bitten businessmen with an eye for

A bargain.

The insolvency scene is always changing. In particular, the effects of the Insolvency Act 1986

And the attitudes of banks and other creditors mean that, more than ever, insolvency

Practitioners are business rescuers. Whilst much of the work done by the profession involves

Formal insolvency procedures, increasingly insolvency practitioners are using their skills to

Restructure and rescue businesses (both in the UK and abroad) without recourse to formal

Insolvency procedures.

Where an insolvency practitioner is appointed In a formal insolvency, the most common

Procedures are the liquidation of companies by a vanety of routes and bankruptcies of

individuals. Even in these cases, often regarded as the 'end of the line' for businesses,

Imagination and determination are still needed to preserve as much of the business (and Its

Associated jobs) as possible, or, as a last resort, to get the best possible price for its assets.

Even where a formal insolvency procedure is necessary, in many cases a positive approach to

The rescue of businesses and Jobs can be taken through the application of administrations,

Administrative receiverships and voluntary arrangements.

The profession has been able to rescue increasing numbers of Jobs and businesses in recent

Years, both because of legislative changes and the changing attitudes of creditors. Overall,

Some 20 per cent of insolvent businesses are rescued in one form or another, in part or in

Whole, and one in every six insolvent individuals enters a voluntary arrangement as an

Alternative to bankruptcy.

Since 1986, all insolvency practitioners have been required to be licensed by a recognised

Professional body (RPB)or the Departmentof Tradeand Industry(DTI)in Englandand Wales, or

the Department of Enterprise Trade and Investment (DETI)in Northern Ireland. An individual's

Date: 2015-12-11; view: 921