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Insolvency: Advisory Services

Volume 495: debated on Wednesday 1 July 2009

To ask the Minister of State, Department for Business, Innovation and Skills what his policy is on the provision of paid advice on insolvency by persons who have not been recognised as insolvency practitioners by the Insolvency Service. (282157)

All those offering consumer credit or debt advice must secure a Consumer Credit Licence from the Office of Fair Trading. This will allow them to offer advice on all matters of debt, including whether insolvency is the best solution.

If an individual voluntary arrangement is suggested an authorised insolvency practitioner will act in relation to the arrangement. There are seven recognised professional bodies, as well as my noble Friend the Secretary of State, which authorise insolvency practitioners. Insolvency practitioners are required to provide details of their authorising body on their letter headed paper. If bankruptcy proceedings are recommended the Official Receiver will, in the first instance, deal with the case. Only the authorising bodies can deal with complaints against insolvency practitioners.