The short answer
To appoint an insolvency practitioner (IP), confirm they are licensed by checking the ICAEW or IPA register, then get two or three written quotes and compare what each fee includes. A formal procedure such as liquidation or administration can only be carried out by a licensed IP, so the licence check is non-negotiable. Once you are comfortable, the IP guides you through the paperwork and formal appointment.
Choosing the right insolvency practitioner matters: this is the person who will run a formal procedure, deal with your creditors, and investigate the conduct of the directors. The good news is that IPs are tightly regulated, so checking credentials is straightforward. This guide explains how to verify a licence, compare quotes, and what to ask before you commit.
Appointing an IP at a glance
- Must be A licensed insolvency practitioner
- Check licence on The ICAEW or IPA register
- Get Two or three written quotes
- Compare What each fee includes, not just the headline figure
- Cost driver Complexity, creditors, employees and assets
- First meeting Usually free and confidential
Why the licence check comes first
Only a licensed insolvency practitioner can act as liquidator, administrator, supervisor of a CVA, or trustee. IPs are authorised and regulated by a recognised professional body — in practice the ICAEW (Institute of Chartered Accountants in England and Wales) or the IPA (Insolvency Practitioners Association). Each body keeps a public register, so you can confirm an individual is authorised before you appoint. To understand the role itself, see what is an insolvency practitioner.
The licence matters because an IP is not just an adviser — they take statutory office, hold creditors’ money, and investigate the directors’ own conduct. They owe duties to the creditors as a whole and are subject to oversight, complaint procedures and a bonding requirement that protects the estate. An unregulated “insolvency adviser” or “company doctor” has none of these protections, cannot take the appointment, and will in any event have to hand you to a licensed IP for anything formal — often after charging a referral fee. Going straight to a licensed IP avoids that extra layer of cost.
How to verify an IP is properly authorised
- Ask which professional body authorises them and for their name as it appears on the register.
- Search the ICAEW or IPA register for that name and confirm the authorisation is current.
- Check the firm’s details match and that there are no obvious warning signs.
- Be wary of unregulated “advisers” who are not IPs — they cannot take a formal appointment and may simply refer you on for a fee.
Getting and comparing quotes
It is sensible to obtain two or three written quotes. Fees vary with the size and complexity of the case, so compare what is actually included rather than the headline number.
| What to ask | Why it matters |
|---|---|
| Is VAT included? | IP fees are quoted plus VAT — the real cost is higher than the headline. |
| Are disbursements covered? | Gazette advertising, bonding and searches are often charged separately. |
| Who pays if there are no assets? | A director contribution may be needed — this should be confirmed up front. |
| What does the fee not include? | Avoids surprise charges later in the case. |
For typical figures across the routes, see how much liquidation costs.
Questions to ask before you appoint
- Which route do you recommend for my situation, and why?
- What will be expected of me as a director during the process?
- How will you deal with my personal guarantees or any director’s loan?
- How long will it take, and how will you keep me informed?
Beware of who is really advising you
A common pitfall is dealing with an introducer or “lead generator” that markets itself like an insolvency firm but is not one. These businesses collect your details, sometimes charge for a “consultation”, then pass you to an IP — not always the one best suited to your case. Ask directly: “Are you the licensed insolvency practitioner who will be appointed, and which body authorises you?” If the answer is vague, or you are told the IP will be “allocated later”, treat that as a reason to approach a regulated firm yourself.
Making the appointment
Once you are comfortable, the IP prepares the paperwork for the chosen procedure. In a creditors’ voluntary liquidation, for example, the directors and shareholders pass the necessary resolutions and the creditors’ decision confirms the liquidator. The IP handles the statutory notices, filings and creditor communications from there. You should receive a clear engagement letter setting out the fee basis, what is and is not included, and what is expected of you. To talk an option through, see speak to an insolvency practitioner.
Need help choosing the right insolvency practitioner?
A short, confidential call with a licensed IP helps you compare your options and understand the likely cost before you commit to anything.
Frequently asked questions
How do I check an insolvency practitioner is licensed?
Ask which body authorises them — usually the ICAEW or IPA — then search that body’s public register by name to confirm the authorisation is current. Only a licensed IP can take a formal appointment.
Should I get more than one quote?
Yes. Getting two or three written quotes lets you compare what each fee includes. Focus on inclusions such as VAT and disbursements, not just the headline figure.
Is the first meeting free?
An initial consultation with an IP is usually free and confidential. It is a chance to understand your options before you commit to a procedure or a fee.
Can a non-licensed adviser handle my liquidation?
No. A formal procedure such as liquidation or administration can only be carried out by a licensed insolvency practitioner. Unregulated advisers cannot take the appointment.
Sources & further reading
- GOV.UK — Find an authorised insolvency practitioner
- ICAEW — insolvency practitioner register
- IPA (Insolvency Practitioners Association) — member register
- The Insolvency Service — guidance for company directors
This guide is general information, not formal insolvency advice. Your situation must be assessed by a licensed insolvency practitioner before you act.