IROP cheat sheet

IROP certification requires at least 2 years of full-time experience in insolvency, restructuring, or a related field; part-time experience is prorated.

Candidates must hold a bachelor's degree or equivalent professional qualification; a high school diploma plus 5 years of relevant experience may be accepted on a case-by-case basis.

The exam is computer-based, 4 hours long, with 120 multiple-choice questions; a passing score is 70% or higher.

Exam fees are due at scheduling; rescheduling is allowed up to 72 hours before the test date for a fee; no-shows forfeit the fee.

Identification must be a government-issued photo ID; names on ID must match the registration exactly.

Scores are reported within 10 business days; unsuccessful candidates may retake after 90 days, up to 3 attempts per 12-month period.

Continuing education: 20 hours per year, including at least 2 hours of ethics, to maintain certification.

Special accommodations for disabilities must be requested at least 30 days before the exam with supporting documentation.

Exam content is based on the four domains: logistics/eligibility, core concepts, applied practice, and regulations/standards/compliance.

Insolvency: inability to pay debts as they fall due (cash-flow insolvency) or liabilities exceeding assets (balance-sheet insolvency).

Restructuring: reorganizing a company's debts and operations to restore viability, often through negotiation or court-supervised process.

Liquidation: winding up a company, selling assets, and distributing proceeds to creditors in statutory order.

Priority of claims: secured creditors, then administrative expenses, employee wages (limited), taxes, unsecured creditors, shareholders.

Stay of proceedings (moratorium): temporary halt to legal actions against the debtor to allow reorganization.

Avoidance actions: clawback of preferential or fraudulent transfers made before insolvency proceedings.

DIP financing: debtor-in-possession financing that gives priority to new lenders to fund operations during restructuring.

Cram-down: court approval of a reorganization plan despite dissenting creditor classes, subject to fairness and feasibility tests.

Best-interest test: ensures creditors receive at least what they would in liquidation under the plan.

Initial assessment: gather financial statements, cash-flow projections, creditor lists, and asset schedules within 7 days of engagement.

Valuation methods: discounted cash flow, liquidation value, and market comparables; choose based on purpose and going-concern status.

Communication protocol: notify all known creditors within 14 days of appointment; publish notice in official gazette and local newspapers.

Claims process: creditors must file proofs of claim within 60 days; late claims may be admitted with penalty or disallowed.

Creditors' meeting: first meeting within 30 days of appointment; agenda includes electing committee and reviewing report.

Asset realization: secure and insure assets immediately; sell perishable goods within 10 days; obtain court approval for sales outside ordinary course.

Distribution: prepare dividend schedule after resolving disputed claims; interim distributions allowed with court approval.

Reporting: file progress reports every 90 days with the court and creditors' committee; final report within 30 days of completion.

Professional ethics: avoid conflicts of interest; disclose any prior relationship with debtor or major creditors.

Applicable law: Insolvency Act (or local equivalent) governs procedures; cross-border cases may follow UNCITRAL Model Law on Cross-Border Insolvency.

Licensing: insolvency practitioners must be licensed by a recognized body; annual renewal requires proof of CPD and no disqualifying events.

Fiduciary duties: act in good faith, with due care, and in the best interests of creditors as a whole; personal liability for negligence.

Confidentiality: client information protected unless disclosure required by law or court order; breach may lead to disciplinary action.

Anti-money laundering: conduct customer due diligence, report suspicious transactions, and keep records for 5 years.

Data protection: comply with GDPR or local equivalent when processing personal data of creditors and employees.

Court oversight: material decisions (sale of business, compromise of claims) require court sanction; failure may void transaction.

Professional standards: adhere to code of ethics of the licensing body; violations can result in fines, suspension, or revocation.