Insolvency, or Bankruptcy as personal insolvency is more commonly known, is a way to ?free you from overwhelming debts so you can make a fresh start?, (and to) make sure your assets are shared out fairly among your creditors? (insolvency.gov.uk). Remember that insolvency should be your last option for getting out of debt, as you will experience serious, long-lasting repercussions. Insolvency.gov.uk reports that in the third quarter of 2007, ?there were 26,072 individual insolvencies in England and Wales? made up of 15,833 bankruptcies? and 10,239 Individual Voluntary Arrangements (IVAs). The numbers of those filing for insolvency have gone done because it is now more difficult to declare insolvency; however, if you feel that insolvency might be the answer to your debt stress, you may want to enlist an insolvency practitioner.
An authorised or licensed insolvency practitioner is a person who can work on your behalf in an insolvency proceeding. An insolvency practitioner may be a lawyer, but not necessarily since 1986, and often has experience in accounting. Any insolvency practitioner must have passed three examinations and met certain experience requirements, according to the Joint Insolvency Examination Board (JIEB). Following, insolvency practitioner licenses can be issued by one of eight associations or societies. Currently, there are over 1,000 authorised insolvency practitioners in the UK.
There are many routes to finding an insolvency practitioner, and one of them is to use the Insolvency Practitioners Association (IPA) website. In addition to ?developing professional standards, creating insolvency qualifications, widening access to insolvency knowledge and understanding?, (and) leading the debates on current issues such as regulation and IP qualifications?,? the Insolvency Practitioners Association website offers a database of insolvency practitioner names, sorted alphabetically and geographically.
The main tasks of an insolvency practitioner are to organise formal insolvency proceedings for the private individual as well as for companies and to give advice on debt reorganisation for those individuals and companies in financial trouble. An insolvency practitioner can independently assess your financial position, give you complete information on your options and their effects on you and your credit, and advise you on the best possible action to take.