The cost of an insolvency practitioner depends on the type of procedure set to be carried out for the company or individual.
What service do I need and how much does it cost?
An insolvency practitioner is able to carry out a range of services and each one has a different payment structure. How much an insolvency practitioner costs will be very much dependent on which service you require. Some services will have a set fee, whilst others will have time costs or monthly payments. In some cases, there may be a combination of both.
How much does an insolvent liquidation cost? (CVL)
A creditors voluntary liquidation is a process that formally closes an insolvent company.
The costs incurred in the process of a creditors voluntary liquidation depends on but are not restricted to:
- The nature and size of the company in question
- The level of its debt and the quantity/value of its assets
- Time spent collecting debts, including those with directors
- Dealing with staff redundancies
If you are considering placing your company into a creditor’s voluntary liquidation, we can provide a free consultation to help you explore your options and the cost involved.Find out more about our costing of CVL
How much does a solvent liquidation cost? (MVL)
A members voluntary liquidation is the formal closure of a solvent company in a tax-efficient manner.
We have a tiered approach to help you understand the cost of an MVL.
- Standard MVL £1,695 + VAT & expenses – This is for a straight-forward MVL where the company has no outstanding liabilities, and all assets have been turned into cash.
- Complex MVL £1,995 + VAT & expenses – If the liquidation of your company is more complex and there are outstanding liabilities to be settled, or assets to be distributed in specie.
- Bespoke MVL + VAT & expenses – With our bespoke MVL we will carry out the valuation and sale of any physical assets, and deal with any disputed creditor claims against your company.
How much does an administration cost?
An administration is the managed closure of a company to maximise the return to creditors. It provides the insolvency practitioner sufficient time to formulate a plan, outlining how to restructure or sell the company and its assets
There are no fixed costs and the insolvency practitioners’ fees will most likely depend on the amount of time spent on the job. During an administration, the insolvency practitioner will see out any remaining work left within the business to maximise the return to creditors, as well as realising assets. So, the cost will depend on the amount of work for the IP to do.
How much does a CVA cost?
Company Voluntary Arrangement (CVA) is a process whereby insolvent companies can set up a formal debt repayment arrangement with creditors.
While there is no fixed cost for a Company Voluntary Arrangement, appropriate fees depend on the individual circumstances surrounding the company. These may include the number of creditors, level of debt, and nature of the business and its assets.
How much does an IVA cost?
An individual voluntary arrangement is for individuals and sole traders, to allow them to group all of their unsecured debts into one affordable monthly repayment.
An IVA has no fixed costs, and how much you’ll pay is decided on a case-by-case basis. Our fees are not in addition to your monthly repayments. Instead, our IP’s fees are included as part of the proposal, and we deduct them from your monthly repayments before they’re split between your creditors.
IVA fees are divided into three categories: Nominee fees, Supervisor fees, and expenses. Each covers different types of fees, associated with the cost of the IVA application, its implementation, and maintenance.See more on our costings of an IVA
How we can help
Each one of the procedures above, must be carried out by a licensed insolvency practice such as ourselves. We are qualified to carry out all of the above procedures and can help walk you through all of the processes for our way of costing. If you’re looking for financial advice and would like a quote, then we provide free confidential advice.
Generally, there are no set costs for an insolvency practitioner, it depends on the type of job, as well as the complexity and size of the job in question. Each procedure mentioned above must be carried out by a licensed insolvency practitioner and they will always work to provide the best return for creditors and the company directors.
Book a free telephone consultation with one of our initial advisers