Who Sets Up an IVA?

Licensed Insolvency Practitioners Only

An IVA can only be set up by a licensed Insolvency Practitioner (IP). This is a legal requirement under the Insolvency Act 1986. An IP is a qualified professional — typically an accountant or solicitor — who has passed specialist insolvency exams and is authorised by a recognised professional body to act in insolvency cases.

The IP's Two Roles

In an IVA, your IP acts in two distinct phases:

• Nominee: Before the IVA is approved. The nominee reviews your finances, drafts the proposal, calls the creditors' meeting, and reports to the court.
• Supervisor: After the IVA is approved. The supervisor collects and distributes your monthly payments, conducts annual reviews, and oversees the arrangement until completion.

In most cases, the same IP or the same firm acts as both nominee and supervisor throughout.

Regulatory Bodies

IPs are licensed by one of the following recognised professional bodies (RPBs):

• Institute of Chartered Accountants in England and Wales (ICAEW)
• Insolvency Practitioners Association (IPA)
• Association of Chartered Certified Accountants (ACCA)
• Institute of Chartered Accountants of Scotland (ICAS)
• The Insolvency Service (for certain cases)

How to Find a Reputable IP

You can find licensed IPs through:

• Free debt charities (StepChange, MoneyHelper) who can refer you to appropriate providers
• The R3 (Association of Business Recovery Professionals) member search
• The IPA's member directory
• The Individual Insolvency Register (to verify an IP's credentials)