What does corporate insolvency involve in the UK?
- Formal insolvency procedures: Initiating processes such as administration, liquidation, or a Company Voluntary Arrangement (CVA) for incorporated businesses.
- Restructuring or winding up: Either restructuring debts to keep the business operational or winding up the company to settle liabilities.
- Appointment of insolvency practitioners: Engaging professionals to manage the process, protect creditor interests, and oversee asset distribution.
- Regulatory compliance: Ensuring all steps meet the requirements of the Insolvency Act 1986 and other relevant laws.
- Stakeholder impact: Balancing the interests of creditors, shareholders, and employees during the insolvency process.
How can a solicitor help with business insolvency, and what does it cost?
A corporate insolvency solicitor can:
- Evaluate insolvency options: Assessing your company’s financial health to determine whether administration, liquidation, or a CVA is most appropriate.
- Advise on restructuring strategies: Guiding you through recovery plans that aim to preserve value for all stakeholders.
- Prepare and file legal documentation: Handling the necessary filings with Companies House, the Insolvency Service, and other regulatory bodies.
- Represent you in negotiations and court: Advocating during creditor meetings, negotiations, or any required court proceedings.
Costs vary with the complexity of your situation, company size, and the solicitor’s expertise. Hourly rates generally range from £150 to £400, with fixed or staged-fee arrangements possible for specific tasks. An initial consultation—often free or offered at a reduced rate—can help clarify your options, estimate fees, and develop a tailored insolvency strategy.