When someone is insolvent, it means that they cannot pay back their debts. Insolvency Practitioners (IP) take control of your finances either through and IVA or bankruptcy and ensure that each creditor receives a fair proportion of the estate
Insolvency practitioners
IP’s will examine your estate – your total worth including your salary – and from that they will work out how much money your creditors will receive from it. You’ll be left with a sum of money which should cover reasonable living expenses.