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Re: IVA and "material irregularity"

PostPosted: Mon Mar 05, 2018 11:33 am
by atticus
A solicitor who is in an IVA can continue to practise. The SRA may impose conditions, particularly in relation to handling client money. I have advised law firms on this as an alternative to bankruptcy. This is less common now that most firms are run not as partnerships but LLPs or limited companies: administration of the LLP/company is the route taken, and no longer IVAs for the individual partners.

Counsel are always unsecured creditors in law firm insolvencies. Every month, if not more often, the Law Society's Gazette reports a law firm that has gone under. Usually the firm is in the personal injury sector, so Counsel are often exposed.