When choosing an Insolvency Practitioner, check that the practitioner is licensed, has relevant sector expertise, and charges a reasonable fee. Our checklist covers everything you should consider when appointing an Insolvency Practitioner, including what makes a good Insolvency Practitioner, whether sector expertise matters, what fees to ask about, and how to choose the right Insolvency Practitioner for your business.
What should I look for in an Insolvency Practitioner?
When looking for an Insolvency Practitioner, check that they are licensed by one of the three recognised professional bodies: the IPA (Insolvency Practitioners Association), ICAEW (Institute of Chartered Accountants in England and Wales), or ICAS (Institute of Chartered Accountants in Scotland). Every licensed practitioner must meet the quality standards set out by their professional body, although what makes a good Insolvency Practitioner is practical experience, sector knowledge, and working style.
When choosing an Insolvency Practitioner, use our checklist:
- Are they licensed?
- Do they have experience dealing with businesses similar to yours?
- Have they explained all the options available to you?
- Who will handle your case?
- How are your fees calculated?
- What additional costs or disbursements should you expect?
- What happens if you can't afford to pay the Insolvency Practitioner?
- Are you at risk of personal liability?
- Have you spoken to more than one practitioner?
As a starting point, check that the Insolvency Practitioner is licensed, as without this, they cannot act on your behalf, and you therefore risk paying twice. Read our guide comparing a licensed Insolvency Practitioner with an insolvency adviser to understand the difference.
Can I choose my own Insolvency Practitioner?
Who chooses an Insolvency Practitioner depends on whether the procedure is entered into voluntarily or the action is compulsory, for example, as a result of a winding up petition. Our guide on what happens after appointing a licensed Insolvency Practitioner goes into detail about who appoints a licensed Insolvency Practitioner based on each procedure.
Does sector expertise matter when appointing an Insolvency Practitioner?
Industry and sector expertise are among the most significant factors when choosing an Insolvency Practitioner. An Insolvency Practitioner with experience in your sector understands specific creditors, contracts, assets, and obligations that shape your options in ways that a general Insolvency Practitioner may not.
For example, an Insolvency Practitioner with construction insolvency experience understands how obligations, such as the treatment of retentions, subcontractor claims, and performance bonds, interact with insolvency legislation. In hospitality, the interplay between landlord relationships, licensing obligations, and supplier terms can create complexities that a practitioner unfamiliar with the sector may not anticipate.
An Insolvency Practitioner experienced in your industry understands the nuances of your sector, asset values, and the regulatory framework. They may also have a strong professional network of contacts in your sector, which is a major selling point if you wish to sell specialist assets or require external expertise from a sector expert.
What questions should I ask before appointing an Insolvency Practitioner?
The initial consultation is your opportunity to assess whether an Insolvency Practitioner is the right fit. Most offer a free consultation, during which you should ask the following questions:
- Am I speaking with a licensed Insolvency Practitioner, or a lead generation firm representing an insolvency practice?
- Are you licensed to give insolvency advice? You can verify an individual’s licence through the Insolvency Service website, or the relevant professional body using their name, practice, or IP number
- Which options are available to my business and what are the advantages and disadvantages?
- What sector experience do you have that's relevant to my sector?
- How much do you charge?
- Are there any additional or hidden costs?
Our full guide on Insolvency Practitioner fees explains how much an Insolvency Practitioner costs by procedure and what a fee quote should include.
Should I compare Insolvency Practitioners?
When choosing an Insolvency Practitioner, speak to more than one Insolvency Practitioner to understand your options, and compare fees, sector expertise, and communication style. Compare more than one Insolvency Practitioner to get an idea of availability and timescales, which may be a key factor if timing is tight. For example, if a court date is approaching following a winding up petition. Most offer a free, no-obligation consultation which can help when comparing Insolvency Practitioners.
If you're wondering how to compare Insolvency Practitioners, follow these steps:
- Contact the Insolvency Practitioner or insolvency practice directly by phone, through live chat, or request a callback to enquire about insolvency services and request a quote
- Use a directory to compare Insolvency Practitioners, including expertise, years of experience, and qualifications
- Check Insolvency Practitioner reviews on trusted websites, forums, and social media
- Word of mouth - speak with real-life clients for honest reviews
Your research when comparing Insolvency Practitioners should help you differentiate between who's the cheapest, who's the most experienced, who's the best fit for your business, and which Insolvency Practitioner sits within your budget. Once you've appointed an Insolvency Practitioner, understand what happens next.
What are the warning signs when choosing an Insolvency Practitioner?
Most Insolvency Practitioners operate professionally; it is a regulated profession. When choosing a licensed Insolvency Practitioner, recognise the red flags. Be cautious if an Insolvency Practitioner:
- Cannot provide their licence details, such as their IP number
- Cannot provide a cost estimate or confirm how fees are calculated
- Cannot provide a cost estimate in writing
- Acts unwilling to discuss alternatives and other possible options
- Pressures you to appoint them immediately
- Guarantees protection from director investigations, including bounce back loan abuse
- Guarantees specific outcomes without a thorough assessment
The Insolvency Practitioner should advise on the options available to your business professionally.
“A good practitioner will ask as many questions as you do. They need to understand your business before they can give you meaningful advice, and that curiosity is exactly what you should be looking for.”
Dave Broadbent, Licensed Insolvency Practitioner
Can I change my Insolvency Practitioner?
You can change your Insolvency Practitioner freely and without complication before signing the letter of engagement. After this point, changing your Insolvency Practitioner is complicated, as you are legally and financially committed, and where creditors are involved, the Insolvency Practitioner has legal duties to fulfil to them.
If you want to change your Insolvency Practitioner, ask them to step down voluntarily, initiate a creditor vote (25% by value), or submit a court application, though you must be able to prove 'just cause'. Ask the right questions and conduct the necessary checks before appointing a licensed Insolvency Practitioner to avoid costly mistakes.
Find a reputable licensed Insolvency Practitioner
A directory of licensed Insolvency Practitioners allows you to search by location, sector specialism, and service type, which makes it easier to identify practitioners that are a good match to your business. Our directory covers licensed Insolvency Practitioners across England and Wales. You can search by postcode or location to find practitioners in your area, review their professional background and arrange a free, confidential consultation.
