Simple Debt Solutions
Debt advice for Solicitors & Legal Professionals
When declared bankrupt, a Solicitor will have his or her practicing certificate automatically suspended, which may result in an intervention by the Law Society in the Solicitor's practice. On the other hand, if a Solicitor enters into an Individual Voluntary Arrangement (IVA), then his or her practicing certificate is not automatically suspended.
When entering into an IVA a Solicitor must inform the Office of Supervision of Solicitors (OSS) who may enforce certain conditions on the Solicitor's practicing certificate. This may include suspension, but is normally limited to obtaining the approval from the OSS of the employment of the particular solicitor or of that Solicitor's membership of a partnership. (It is unlikely that the OSS would allow a Solicitor to continue to practice as a sole Practitioner).
The Institute of Legal Executives will not immediately exclude Legal Executives for either bankruptcy or entering into and IVA, but will review each case, and decide if exclusion is the most suitable course of action. Members do have an obligation to report to the Institute their bankruptcy or if they are entering into an IVA. If the Disciplinary Committee impose an exclusion from membership, a minimum period may also be suggested in which re-admission to the Institute should not be permitted. This restriction is not binding and any former member will be able to re-apply for membership at any time.
If bankruptcy proceedings are initiated against a Barrister, he or she must inform the Bar Council. The same applies if they enter into an IVA or if a bankruptcy order is made against them. Failure to do so is professional misconduct (Chapter IX rule 901 of the Code of Conduct of the Bar of England and Wales). Personal insolvency cases may be investigated and if a breach of the Code of Conduct is found then the Barrister may be sanctioned.
Most Barristers' clerks are members of the Institute of Barristers' Clerks. The organisation’s rules do not deal specifically with bankruptcy, and bankruptcy in itself need not prevent a member from continuing to practice.
Simple Debt Solutions are experienced in providing debt advice to the corporate and professional market, please call 0800 389 5959 for confidential and professional advice.