A Licensed Insolvency Trustee, also referred to as an Insolvency Practitioner or IP, is an individual qualified by the Superintendent of Bankruptcy to undertake bankruptments and proposed proposals and manage assets in trust under the Insolvency Act. Licensed Insolvency Trustee's have special skills in the area of commercial insolvency that can assist business owners and directors in UK. Licensed Insolvency Trustee's are regulated by the Insolvency Service. An IP is granted an Insolvency Service Company either on a permanent or temporary basis. Temporary services are generally for short periods of time, usually from one to three months.
As a result of the differences in licensing requirements, licensed insolvency trustees can be relatively expensive in comparison to other debt relief options. It is worth noting that while the Licensed Insolvency Trustee can represent you in court, they cannot give legal advice or conduct proceedings on your behalf, discover more here. There are many differences between what a licensed insolvency trustee and a bankruptcy practitioner can do. For instance, practitioners cannot give legal advice or representation. On the other hand, they are authorized by law to give specific advice to debtors.
Insolvency practitioners who are registered with the Debt Relief System (CDRS) are considered to meet a higher standard than non-regulated or self-regulated practitioners. It is important to note that although licensed insolvency trustees are regulated by the CRSA, the CSA does not have authority over the insureds or the insured's advisors. Therefore, it is imperative for individuals who have questions concerning their debt relief options to consult an authorized insolvency practitioner in order to get the answers they need from qualified professionals. Read more here!
Many debt consultants offer debt management plans that are unregulated and therefore may not be the safest option for a particular situation. In addition, some debt consultants are self-regulating. Self-regulation means that a consultant cannot legally charge fees unless they are following the CRSA regulations. Licensed Insolvency Trustee's and debt consultants that are not regulated by the CRSA are considered unprofessional by financial experts. An unprofessional debt consultant can provide inaccurate advice and recommendations that could lead to disaster for an individual's financial situation.
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