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How much will I have to pay an Insolvency Practitioner? When money is a concern many business owners ask this question. It is very rare that a company will need to use an Insolvency Practitioner more than once, unless they are very unlucky, so understanding the way Insolvency Practitioners work can be a strange process.
To wind down a company or start insolvency proceedings you need to speak to an insolvency practitioner. It may be hard to find an IP that is recommended due to the unique services they offer. However, your accountant may work regularly with a trusted insolvency practitioner and can refer them to you. Without experience or common referrals, it can be hard to know what to expect from an IP. One of the biggest worries people have about Insolvency Practitioners are the fees. When you are already concerned about money, you do not want to be spending a lot of money to close your business.
At Lines Henry we start our Liquidation Fees from £2,500 this is a reasonable price, not as expensive as many but a good value cost to get the outcome you want and need. Some insolvency practitioners can charge up to double this amount.
Why is there an Insolvency Fee?
Insolvency needs a licensed insolvency practitioner as there are regulations to adhere to, your IP will discuss with you your options and see what insolvency procedure is necessary. Our first priority is business recovery and if you come to us early enough there is a good chance we can help you continue your business, or find a low cost solution to get your creditors off your back. We are completely transparent about our fees and what is involved, the cost involved in insolvency can vary significantly and will be dependent on a number of factors such as;
- The type of insolvency procedure is necessary
- The size of the company and debts
- The experience and specialisms of the Insolvency Practitioner needed
- Any money available after assets have been sold and creditors have been paid
- The legal requirements the IP has to undertake
If you are concerned about your business and think you need some insolvency advice, contact us for a call back and we can give you a free consultation.