What is the role of an Insolvency Professional?

The role of an Insolvency Professional primarily focuses on managing insolvency proceedings. This includes overseeing the process of dealing with the debts of individuals or businesses that are unable to pay their debts. An Insolvency Professional acts as a neutral party who ensures that the process adheres to legal requirements and that the interests of all stakeholders, including creditors and debtors, are fairly represented.

Key responsibilities often include assembling information about the debtor's financial situation, formulating a resolution plan, and ensuring compliance with relevant laws and regulations throughout the proceedings. By managing the entire process, the Insolvency Professional helps facilitate the proper resolution of financial distress, whether through restructuring, liquidation, or other means.

In contrast, representing debtors in court or providing legal advice falls outside the primary scope of an Insolvency Professional, as these tasks are typically associated with lawyers or advocates who specialize in litigation or legal consulting. Supervision of bankruptcy trustees pertains to an operational role, rather than the broader management function an Insolvency Professional performs in guiding the overall insolvency process.