If you think you are facing serious debt it may well be worth seeking advice from an Insolvency Practitioner early to keep as many options open as possible. Solutions at this stage could range from simple informal advice to arranging re-scheduling of debts.

As a third party it will be easier for the Insolvency Practitioner to negotiate with your Creditors, possibly avoiding potential Bankruptcy by arranging a repayment plan or proposing an Individual Voluntary Agreement. In addition it could give a positive signal to your Creditors by using a professional that you are serious about resolving your debts.

If insolvency is unavoidable you will require the services of an Insolvency Practitioner as they are legally required to arrange Individual Voluntary Agreements. You may also appoint an Insolvency Practitioner as an alternative to the Official Receiver in Bankruptcy proceedings. It is worth noting that Scottish Law is different to English and Welsh, so your Insolvency Practitioner should be experienced with the country you are in.

When seeking the services of an Insolvency Practitioner you should make sure that they are licensed and belong to one of the professional associations listed at the end of this article. You will need to have full details of your financial situation including debts, bank statements, and income. It is important that you are honest so they can advise you correctly; as professionals you can be assured your details will remain confidential.

England and Wales

• IPA (Insolvency Practitioners Association)
• ACCA (Association of Chartered Certified Accountants)
• ICAEW (The Institute of Chartered Accountants in England & Wales)
• LS (The Law Society)

Northern Ireland

• ICAI (The Institute of Chartered Accountants in Ireland)

Scotland

• LSS (The Law Society of Scotland)
• ICAS (The Institute of Chartered Accountants of Scotland)