Why It Matters Who You Take Advice From
When your business is in financial difficulty, who you take advice from matters. There are many firms offering insolvency "advice" - but not all are what they seem. Choosing a properly licensed insolvency practitioner gives you protection, expertise, and accountability that unlicensed advisers cannot match. A good practitioner can make a difficult situation manageable; a poor one can make it worse.
What a Licensed Practitioner Offers
Qualification and Experience
A licensed insolvency practitioner has passed rigorous examinations, demonstrated experience under supervision, and maintains their knowledge through ongoing professional development. They have the expertise to handle your case properly.
Legal Authority
Only a licensed practitioner can be appointed as a liquidator, administrator, or supervisor of a CVA or IVA. An unlicensed adviser cannot take a formal appointment - they can only pass you to someone who can, often for a fee.
Accountability
A licensed practitioner is regulated by a Recognised Professional Body (such as the ICAEW), bound by a strict code of conduct, and subject to a complaints and discipline process. They hold professional indemnity insurance to protect you.
What Makes a Good Insolvency Practitioner
Not all licensed practitioners are the same. Knowing what to look for helps you choose wisely at a critical moment.
1. Honest Advice
A good practitioner tells you the truth - whether rescue is possible or whether closure is the responsible route. They are bound to act in the best interests of creditors, do not pressure you toward a particular solution, and are willing to tell you when insolvency is - or is not - the right answer.
2. Proper Licensing
Licensing by a Recognised Professional Body (such as the ICAEW, IPA, or ICAS) is non-negotiable. An unlicensed person cannot act as a liquidator, administrator, or supervisor - no matter how confident they sound. Always verify the licence.
3. Direct Access
A good practitioner speaks to you directly, rather than passing you to a salesperson or call centre. You deal with a named professional who knows your case and can give you real answers from the first conversation.
4. Transparent Fees
A good practitioner gives you a clear, written estimate of fees before you commit - what's included, what's charged separately, and what happens if assets realise less than expected. No hidden charges, no low headline fees with extras added later.
5. Experience and Specialism
Different situations need different expertise. A good practitioner has experience with your type of case - corporate rescue, solvent closure, personal insolvency, or a specific sector - and is honest about where their expertise lies.
6. Clear Communication
Insolvency is complex. A good practitioner explains every step in plain English, answers your questions patiently, and keeps you informed throughout. You should never feel confused about where you stand.
7. Compassion and Discretion
Behind every insolvency are real people and real livelihoods. A good practitioner handles your case with discretion and respect, recognising the personal stress involved, and supports you throughout.
The Problem with Unlicensed Advisers
Some firms operate as lead-generation services. You speak to a salesperson, your details are passed on, and a fee changes hands - all before you receive any real advice. You may never speak to a qualified practitioner, and the firm may be incentivised to steer you toward a particular solution. Others charge for "advice" without being able to take a formal appointment, leaving you to find and pay a licensed practitioner separately.
How to Choose
- Check the licence - verify the practitioner is licensed by an RPB like the ICAEW
- Speak to a practitioner - not a salesperson or call centre
- Look for transparency - clear, written fees and honest options
- Choose a local firm that understands your business environment
Speak to a Licensed IP
Our Manchester-based, ICAEW-licensed practitioners embody all of these qualities. Call us for a free, confidential conversation - with a named practitioner, honest advice, and clear fees.