In an IVA, what is the Insolvency Practitioners role?
The IP’s role changes as the case goes on. Before applying for an IVA he is your professional adviser, with responsibilities only to you. It is up to him to help you make the right decision about what to do and, if you proceed with an IVA, to help you put your proposal to your creditors.
When you decide to go ahead, the IP becomes the ‘nominee’. At this point the IP’s role changes, and he has legal duties to the court and to creditors which may conflict with your interests. For
example, if he thinks your proposals are not fit to put before a creditors’ meeting, he is obliged to say this to the court, and the court may end the IVA procedure at that stage.
If the IVA is approved, the IP’s role changes again. He is then the ‘supervisor’ of the IVA, and his responsibilities are mainly governed by the terms of the arrangement, but he still has
responsibilities to the court. His position now is to be ‘honest broker’ – to act even-handedly between you and your creditors and to ensure that the terms of the proposal are fulfilled. If the
proposal requires him to bankrupt you if you fail to deliver your part of the bargain – and creditors will probably insist on such a term – then that is what the supervisor must do.