Too many IPs for too few jobs

The insolvency profession could be indundated with qualified professionals
but there may not be enough work to go around, experts have warned.

An influx of students sitting insolvency exams is reaching record levels but
already qualified professionals are struggling to find profitable work, despite
the recession and high levels of business and personal bankruptcy.

“It is already becoming difficult to find work out there for IPs,” said Mark
Sands, head of bankruptcy for Tenon.

“There are approximately 70,000 bankruptcies and just 5,000 have assets,” he
added.

The growing popularity of renting rather than buying property could reduce
assets in a company administration or personal insolvency, explained Sands.

“When there are no assets the official receiver will keep the case, meaning
there is even less work for the IP,” he added.

Joanne Wright, personal insolvency partner at Begbies Traynor, warned that a
qualification failed to guarantee a flow of work. “We may have more qualified
people but this doesn’t necessarily mean they will take appointments, as it
could be that there is not enough work to go round,” she said.

Insolvency Service statistics released earlier this year revealed 426 IPs
failed to take appointments, out of 1,701 licensed practitioners in 2008.

“In some ways the profession is caught between a rock and a hard place.

“Previously there was a worry there were not enough IPs and now there is a
worry that there could be too many,” Wright said.

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