According to the Insolvency Lawyers? Association?s website, ?The ILA was formed in 1989 as a special interest group to promote the role of lawyers in the insolvency profession generally and to advance the theory and practice of insolvency administration.? Probably the most attractive feature of their website for the general public is the list of members? names, by alphabet and by geographical region. This could be a starting place in your search for an insolvency lawyer, a search which should be taken very seriously.
An insolvency lawyer, however, is not the only route to declaring insolvency. You may also employ an authorised or licensed insolvency practitioner (IP). Most IPs have an optional background in accounting, and they do not have to be lawyers. Their profession is regulated under the Insolvency Act of 1986, which requires them to pass a set of examinations and to have enough experience to surpass the requirements in this area. Upon doing so, they will be issued a licence from an approved organization.
A hired insolvency lawyer or IP will act on your behalf during the insolvency process, making all necessary arrangements, including documentation and contacts. Your insolvency lawyer will initiate contact with your creditors and explain your case. In the instance of an individual voluntary arrangement (IVA), they will then work on behalf of the creditors, as a supervisor to your repayment obligations.
This IVA mentioned earlier is the most drastic financial correction measure taken, before insolvency, but it is also arranged by an insolvency lawyer or IP. An IVA, as stated by IVA?s website, ?is a formal agreement between you and your creditors? Under the terms of the IVA the payments you make will be less than the full amount of your debts and by agreeing to the terms of the IVA your creditors are accepting the offer as a full and final settlement of their claim.?
An insolvency lawyer or an insolvency practitioner can be invaluable on your road to financial improvement. Never forget, however, that this is their job for which they must be paid. Their services and the arrangements that they come up with cost money.