How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JGM Your Own Question
JGM, Solicitor
Category: Law
Satisfied Customers: 11154
Experience:  30 years as a practising solicitor.
Type Your Law Question Here...
JGM is online now

How much would it cost for a creditor to apply and complete

Resolved Question:

How much would it cost for a creditor to apply and complete an involuntary wind-up of a limited company?
How many estimated hours will the solicitor work and, generally, what are the solicitors goals/workload?
Is it necessary to hire a solicitor or the process can be done by laymen?
Submitted: 11 months ago.
Category: Law
Expert:  JGM replied 11 months ago.

The solicitor would take about 5 hours at £200-250 per hour. The solicitors goals are to get a winding up order. There will be court and advertising outlays of about £1200. The nominated liquidator would also have to be satisfied that his fees would be covered so the company would have to have assets or the creditor would have to underwrite the fees, often around £5000.

Customer: replied 11 months ago.
Thank you for your response,1) Once the solicitor has drafted the petition to the court, does he need to e.g. attend court or prepare other forms, as in other disputes? Or is it only the winding-up petition the needs to be filed and then the rest is done by the court/practitioner?2) The goverment website indicates the costs are 280£ court fees and 1600£ to manage the winding up.
Your 5,000£ seem to be far away from 1880£+1000 solicitors fees.
You basically suggest the 1600£ does not cover the liquidators costs?
Expert:  JGM replied 11 months ago.

1. The solicitor prepares the papers including the petition, advertising and service documents. He only has to appear in court if the petition is opposed. 2. I can only tell you what my experience is of costs. No insolvency practitioner I know would work for the rates you say the government quote.

JGM and other Law Specialists are ready to help you