Insolvency Practioner meaning

In practice, an insolvency practitioner is the licensed professional appointed to run formal personal or corporate insolvency procedures - liquidations (including provisional liquidation), administrations, administrative receiverships, bankruptcies and voluntary arrangements (CVA/IVA) - and to act as the statutory office-holder. In England & Wales and Scotland, the term is defined in the Insolvency Act 1986 (s.388) as a person authorised by a recognised professional body or by the Secretary of State to take insolvency appointments; the equivalent definition in Northern Ireland is in the Insolvency (Northern Ireland) Order 1989. UK insolvency practitioners must hold an authorisation and bond, and comply with the Insolvency Code of Ethics and Statements of Insolvency Practice. In Ireland, usage is broadly similar in practice but differs in law: corporate roles (liquidator, examiner, receiver) are restricted under the Companies Act 2014, while personal insolvency is handled by Personal Insolvency Practitioners (PIPs) authorised by the Insolvency Service of Ireland; “insolvency practitioner” is therefore a descriptive term rather than a standalone statutory status in Ireland. Also referred to as an office-holder, an insolvency practitioner’s core functions include safeguarding and realising assets, investigating affairs and director conduct, proposing and supervising arrangements, reporting to creditors and the court, and distributing returns.