Job description

A company is insolvent when it can no longer meet its financial obligations and pay its creditors on time. Insolvency can be defined as when debts exceed assets and cash flow. A company that is insolvent must take immediate action to ensure that debt obligations can be met - by generating cash through the sale of assets and cutting expenditure, or by renegotiating debt. Insolvency does not necessarily lead to administration, receivership or bankruptcy.

Insolvency Practitioners are qualified accountants who specialise in insolvency. They are called in to assist companies or individuals who are insolvent.

Typical duties include:

• Comprehensively reviewing clients' financial situations and identifying opportunities to raise cash or cut costs.
• Arranging meetings with creditors and renegotiating debt repayments.
• Collecting debts owed to clients.
• Negotiating on the sales of assets where appropriate and possible.
• Taking control of client businesses in order to rescue the business as a going concern.
• Working closely with official receivers and relevant statutory bodies.
• Winding down or liquidating companies if the company can no longer continue trading.

Qualifications

Insolvency practitioners must be qualified accountants with active membership of a relevant accounting body. Practitioners must also pass the JIEB (Joint Insolvency Examinations Board) exams to obtain a licence to practice.

Salary snapshot

Recent salaries advertised on TopFinancialJobs (December 2009) include:

• £41-50,000 for a qualified (ACA, studying for the JIEB exams) Insolvency Assistant Manager working for a leading accountancy firm in London.
• £15-18 per hour for a qualified (ACA, ACCA, JIEB) Insolvency Administrator working on a temporary contract for a small boutique insolvency firm in London.
• £50-60,000 for a qualified Insolvency Manager working for a specialist insolvency firm in London.
• £70-80,000 for a qualified (ACA, JIEB) Insolvency Senior Manager working for a world leading firm in London.

Are you an insolvency specialist? Would you like to contribute to our "Day in the Life of..." series? Email us at info@topfinancialjobs.co.uk for more details.