Section 3 of 16

Your Insolvency Practitioner

Who your IP is, how they are regulated, what fees they charge, what they must do for you, and how to complain if things go wrong.

Who is your Insolvency Practitioner?

Your Insolvency Practitioner (IP) is a licensed professional with the legal authority to act in insolvency proceedings. They cannot delegate this responsibility to an unlicensed person. Your IP has two roles: before approval they acted as Nominee; once approved they became your Supervisor, responsible for overseeing the arrangement, collecting your payments, and distributing money to creditors.

Licensing and regulation

All IPs must hold a personal licence from a recognised professional body (RPB): the Insolvency Practitioners Association (IPA), the Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants of Scotland (ICAS), Chartered Accountants Ireland, the Law Society of England and Wales, or the Law Society of Northern Ireland. IPs are subject to annual monitoring and can have licences suspended or revoked for misconduct.

Verifying your IP's licence

You can check that your IP holds a current licence by searching the Insolvency Service's register on GOV.UK. Enter your IP's name to see their authorisation details and the body that regulates them.

How your IP is paid

Your IP's fees are paid from the money you pay into your IVA, not separately by you. Their remuneration comes out of your contributions before the remainder is distributed to creditors. Fees typically fall into two categories:

  • Nominee fee: A one-off fee for setting up the IVA — preparing the proposal, liaising with creditors, and managing approval.
  • Supervisor fee: An ongoing fee for managing the IVA — collecting payments, conducting reviews, distributing funds, and dealing with any variations.

The amounts must be approved by your creditors as part of the IVA proposal.

Disbursements

In addition to fees, your IP may charge disbursements such as postage, insurance premiums, and administration costs. These should be approved in the proposal. If you see charges you do not recognise, ask your IP for a full breakdown.

Responsibilities as Supervisor

Your Supervisor's core responsibilities include collecting your monthly payments and holding funds in a designated trust account, distributing funds to creditors at intervals, conducting annual reviews, dealing with any variations, reporting to creditors and their professional body, issuing a completion certificate when the arrangement is fulfiled, and terminating the IVA if terms are breached.

Your rights with your IP

Your IP has obligations to you as the debtor: explaining the terms clearly, responding to enquiries within a reasonable time, giving adequate notice before significant decisions, conducting annual reviews promptly and fairly, not charging fees undisclosed in the approved proposal, and issuing a completion certificate promptly once you have fulfiled the terms.

If you have concerns about your IP

  1. Raise it with your IP directly — in writing, stating what happened, what should have happened, and what outcome you seek. Keep copies of all correspondence.
  2. Use the firm's complaints procedure — all regulated firms must have a formal complaints process.
  3. Escalate to the regulatory body — if unresolved, refer to the RPB that authorises your IP.
  4. Contact the Insolvency Service — which can investigate serious complaints including misconduct.