The short answer
An insolvency practitioner (IP) is a licensed professional authorised to take formal appointments over insolvent (and some solvent) companies and individuals — as liquidator, administrator, supervisor of a CVA or trustee in bankruptcy. By law, formal procedures such as a CVL, administration, CVA or MVL must be carried out by a licensed IP. They are regulated by a recognised professional body (the IPA or ICAEW), owe duties to creditors as a whole, and you can verify any IP’s licence on the official registers.
If you are looking at any formal insolvency route, an insolvency practitioner is the person the law requires to be in charge. This guide explains what an IP is, the appointments they take, when you must use one, how they’re regulated and paid, and — importantly — how to check that someone claiming to be an IP actually holds a licence.
Insolvency practitioner at a glance
- What they are A licensed insolvency professional
- Required for CVL, administration, CVA, MVL, bankruptcy
- Regulated by IPA or ICAEW (recognised bodies)
- Duty owed to Creditors as a whole
- Verify a licence IPA / ICAEW registers, GOV.UK
- Typical small-CVL fee £4,000–£6,000 +VAT
What an insolvency practitioner does
An IP takes formal, statutory appointments and acts under the Insolvency Act 1986. Depending on the case they may serve as:
- Liquidator — in a CVL, compulsory liquidation or MVL.
- Administrator — running a company in administration to rescue or sell it.
- Supervisor — overseeing a Company Voluntary Arrangement (CVA).
- Trustee — in personal bankruptcy or an IVA.
In every role the IP owes duties to creditors as a whole — not to the directors who appointed them — and must investigate the company’s affairs and the directors’ conduct.
When the law requires one
You must use a licensed IP for a CVL, administration, CVA or MVL. You do not need one for a simple solvent strike-off of a dormant, debt-free company (the directors do that at Companies House) — but if there are real debts, strike-off is the wrong route and an IP-led procedure is appropriate.
How they are regulated and paid
IPs are licensed and monitored by a recognised professional body — principally the Insolvency Practitioners Association (IPA) or ICAEW — with the Insolvency Service overseeing the regulatory framework. They must hold professional indemnity insurance and a specific bond for each case. Their fees are controlled by statutory rules and, in many cases, approved by creditors; for a small CVL expect roughly £4,000–£6,000 +VAT.
Adviser vs practitioner: know the difference
Many firms advertise “insolvency advice.” Some are licensed IP firms; others are introducers who pass you to an IP. Both can be fine — but you are entitled to know, before you commit, the name of the licensed individual who will actually take the appointment, and to check their licence yourself.
Want to speak to a genuinely licensed insolvency practitioner?
We connect directors with regulated, licensed IPs — not unregulated introducers. A first conversation is confidential and free, and you’ll know exactly who you’re dealing with.
Frequently asked questions
Do I legally need an insolvency practitioner?
For a CVL, administration, CVA or MVL, yes — by law these must be carried out by a licensed insolvency practitioner. For a simple solvent strike-off of a dormant, debt-free company you do not, but that route is not appropriate if the company owes money.
How do I check an insolvency practitioner is licensed?
Verify the individual on the register of their recognised professional body — the IPA or ICAEW — or check via GOV.UK. Anyone taking a formal appointment must appear there.
Who does the insolvency practitioner work for?
Even though directors often appoint them, an IP owes duties to the creditors as a whole and must act in their interests, including investigating the directors’ conduct.
What’s the difference between an IP and an insolvency adviser?
An insolvency practitioner is licensed to take formal appointments. An adviser or consultant may only provide guidance or introduce you to an IP. Always confirm the name of the licensed IP who will handle your case.
How much does an insolvency practitioner charge?
Fees depend on the procedure and complexity and are governed by statutory rules. A small-company CVL is typically £4,000–£6,000 plus VAT; a solvent MVL is often £1,500–£3,000 plus VAT.
Sources & further reading
- Insolvency Act 1986 — authorisation of insolvency practitioners
- Insolvency Practitioners Association (IPA) and ICAEW — practitioner registers
- The Insolvency Service — regulation of insolvency practitioners
- GOV.UK — Find an insolvency practitioner
This guide is general information, not formal insolvency advice. Your situation must be assessed by a licensed insolvency practitioner before you act.