A solicitor insolvency practitioner referral partnership works best when both sides agree, in writing, on how distressed clients are handled before the first referral ever happens. That means shared expectations on client care, clear boundaries around independence, and a simple process for sending work each way — not an informal arrangement built on goodwill alone.
Many solicitor and insolvency practitioner (IP) relationships start well and drift. A director is referred once, the outcome is good, and both firms assume the relationship will simply repeat itself. It rarely does without structure. This guide sets out what actually keeps a referral partnership working over years rather than months, and where conduct rules and general good practice draw the lines.
What makes a solicitor insolvency practitioner referral partnership last
The partnerships that survive share three features: a written understanding of what each firm does and does not do, a realistic view of referral volume, and regular contact that is not tied to a live case. Firms that only speak when there is a client in front of them tend to lose momentum quickly.
It also helps to be specific about the type of work referred. A solicitor handling company disputes may send creditors' voluntary liquidation cases; an insolvency practitioner may return the favour with directors who need advice on a director disqualification matter. Naming these flows explicitly, rather than leaving them vague, makes the partnership easier to explain to clients and colleagues.
Aligning on client care, not commissions
A durable partnership is built around what happens to the client, not what either firm earns from the introduction. If commission or fee-sharing terms dominate early conversations, the relationship usually struggles once a case goes badly or a client complains.
Practical alignment looks like:
- Agreeing who leads communication with the client at each stage, so nobody assumes the other firm has already explained a step.
- Setting a shared minimum standard for response times to client queries, even where each firm's systems differ.
- Deciding in advance how a referral is handled if the client's situation falls outside either firm's usual remit — for example, a personal guarantee issue alongside a company insolvency.
- Being honest with each other, early, if a case is not progressing as expected.
None of this requires elaborate documentation. A short referral protocol, reviewed annually, usually covers it.
Keeping independence visible on both sides
Referral arrangements between solicitors and insolvency practitioners sit under professional conduct rules, and both professions need the relationship to look — and be — independent. A solicitor must not appear to be steering clients toward a particular IP for reasons other than the client's interest, and an IP must remain able to give impartial advice regardless of who referred the case.
In practice this means:
- Telling the client, plainly, that a referral has been made and why, rather than assuming it is understood.
- Avoiding referral fee structures that could be seen as influencing the advice given to the client.
- Making sure the client is free to choose a different insolvency practitioner or solicitor if they prefer one.
- Keeping referral arrangements consistent with the SRA's rules on referrals, introductions and separate businesses.
Firms that treat independence as a box-ticking exercise rather than a genuine principle tend to find it becomes a problem later, usually when a client complains or a regulator asks questions. Insolvency practitioners are authorised and regulated under Part XIII of the Insolvency Act 1986, and it is worth both firms understanding that framework rather than assuming it only concerns the IP side.
Service levels that make referring easy
Referrals dry up when the receiving firm is slow, unclear, or hard to reach. The most active referral partnerships set informal service levels — not contractual penalties, just shared expectations — that make it low-effort to send a client across.
Useful service-level habits include:
- Acknowledging a new referral within one working day, even if a full response takes longer.
- Giving the referring firm a named contact rather than a general enquiries inbox.
- Confirming, briefly, what happens next and by when — directors and referring solicitors both want to know the case has landed somewhere active.
- Flagging urgent matters, such as a winding-up petition with a court date, so they are not treated the same as a routine enquiry.
This is also where an introducer can help. Firms building a working with introducers approach alongside direct referral partnerships often find the two channels complement each other, provided each keeps its own compliance standards.
Reviewing the relationship and outcomes
A referral partnership needs a periodic review, not just a launch. Twice a year is usually enough for most firms. The review does not need to be formal — a short call or a one-page summary of referrals sent, received and outcomes is often sufficient.
Points worth covering in a review:
- How many referrals moved each way, and whether the balance still feels fair.
- Whether client feedback, direct or indirect, raised any concerns about communication or delay.
- Whether either firm's capacity or specialism has changed since the last review.
- Whether the referral protocol still reflects how work is actually being handled.
Firms that treat this as routine housekeeping, rather than a difficult conversation, tend to keep partnerships healthy for years. For IP firms building this into a wider growth strategy, it sits alongside broader work such as lead generation for insolvency practitioners as one channel among several.
Frequently asked questions
Can a referral partnership be exclusive?
It can, but exclusivity should serve the client, not just convenience. An exclusive arrangement works best when both firms are confident the other consistently meets client needs, and the client is still told they are free to choose an alternative.
Should we join a formal referral panel instead of a one-to-one relationship?
Panels can widen reach and share due-diligence work across a group of firms, which suits practices with limited capacity to build individual relationships. A one-to-one partnership can offer closer working and clearer accountability. Many firms use both — see our guide on joining a solicitor referral panel as an IP for how panels typically operate.
What happens if a referred case goes badly?
Handle it directly and early. Discuss what happened with the other firm before the client raises it, and be clear about each firm's separate complaints process. Clients can also raise concerns about an insolvency practitioner's conduct directly, including through the formal route to complain about an insolvency practitioner where informal resolution does not work.
Do we need a written referral agreement?
It is not a legal requirement for most arrangements, but a short written protocol reduces misunderstandings and gives both firms something to refer back to at review time. It does not need to be a lengthy contract.
How do we find the right insolvency practitioner or solicitor to partner with?
Start with firms that are demonstrably active in the relevant work. The list of insolvency practitioner authorising bodies confirms regulated status, and case types handled matter more than reputation alone. A trial period with a small number of referrals each way is a sensible way to test fit before committing further.
This article is general information for firms and is not legal, regulatory or insolvency advice. Firms should take their own professional advice on referral arrangements and the conduct rules that apply to their circumstances.
If your firm is exploring how referral partnerships fit alongside other routes to distressed clients, Harbourfirst can introduce you to a regulated insolvency practitioner or solicitor to discuss it — start an enquiry.