Solicitors should understand their professional obligations following bankruptcy rather than relying on the SRA and insolvency practitioners, advises Susanna Heley
The relationship between the Solicitors Regulation Authority (SRA) and insolvency practitioners (IPs) should be fairly straightforward. Both have statutory obligations to fulfil certain duties and there should, in theory, be limited crossover between the SRA’s interests (i.e. the protection
of client funds and files) and
the insolvency practitioner’s interests (collecting and distributing assets for the benefit of the creditors).
This is not always the case
in practice, and differences between IPs and the SRA can
be exacerbated by commercial considerations as well as misunderstandings as to the status of client funds and files. Take...