Most directors pick an insolvency practitioner the way they would pick any adviser: by reputation, fee and how the first conversation went. Those things matter. But the practitioner you choose is not simply your adviser. If they are appointed, they act for the company’s creditors, not for you.
So the useful questions are not only whether you trust them. They are whether they can lawfully take the appointment, whether they will actually be the one appointed, and whether they will be straight with you about what the appointment will involve.
Which practitioner is actually appointed
Who has the final word depends on the procedure:
- Creditors’ voluntary liquidation: the shareholders nominate a liquidator, but the creditors can nominate someone else, and if they do, the creditors’ choice becomes liquidator unless the court orders otherwise. See creditors’ voluntary liquidation.
- Compulsory liquidation: when the court makes a winding-up order, the Official Receiver becomes liquidator. The directors do not choose. See compulsory liquidation.
- Company voluntary arrangement: the practitioner proposed by the directors supervises the arrangement only if the creditors approve it, which needs 75% by value of the creditors who vote. See company voluntary arrangements.
The practical point: a director who waits until a creditor has petitioned has already lost most of the choice this page is about.
How to check a practitioner is authorised
Acting as a practitioner without being qualified is a criminal offence. Every practitioner must be authorised by one of the three recognised professional bodies:
- 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Chartered Accountants Ireland stopped authorising practitioners at the end of 2024, and its recognition was revoked from 1 June 2025, so older lists that include it are out of date. You can check a name on the gov.uk practitioner search, which searches by name, town or county.
Be clear who you are dealing with. Some firms that advertise insolvency help may not be insolvency practitioners at all, and pass the case on to one. Ask for the name of the individual practitioner who would take the appointment, and check that name. Our page on licensed insolvency practitioners explains the qualification in more detail.
What to ask at the first meeting
A first meeting should leave you knowing what the practitioner thinks will happen, and why. These questions get you there:
- Which procedure do you recommend, and why not the others? A practitioner who cannot explain the trade-off has not understood the company.
- Who exactly would be appointed? Get a named practitioner and their authorising body, not only a firm name.
- How many cases like this have you run? Liquidating a trading company with staff and leased premises is different work from closing a dormant one.
- Has your firm worked for the company before? Under the Insolvency Code of Ethics, recent audit work for the company will usually stop a firm taking an insolvent appointment, and other past work may need safeguards before the firm can act.
- How will your fee be set, and who approves it? Our guides to insolvency practitioner fees and the costs of liquidation cover how fees work and what drives them.
- What will you need from me, and by when? Books, records and the company’s financial position are usually needed quickly.
- What will you look at in how the company was run? In a liquidation or administration, the office-holder must report on the conduct of every director of the last three years.
When to walk away
Some answers should end the conversation. Be wary of any practitioner who promises how the conduct report will read, or who suggests the creditors will simply go along with whatever the directors want. Neither is theirs to promise. The Code of Ethics requires them to act objectively once appointed, and the obligations of an insolvency practitioner run to the creditors as a whole.
Be equally wary of pressure to sign quickly without a clear explanation of cost. A practitioner who is confident in the advice will put it in writing.
How to compare fees
Ask two or three practitioners for an estimate for the same procedure. Compare what each quote includes, not only the headline figure. A low fee that leaves out the statement of affairs, the creditors’ decision process or asset realisation is not a low fee.
AABRS® offers a free, no-obligation initial consultation, which gives you a clear view of the likely route and cost before you commit to anything.
If you need a practitioner now
AABRS® is a firm of licensed insolvency practitioners who take liquidation, administration and voluntary arrangement appointments. To find out which procedure fits your company and what it will require of you, call 0208 444 3400.