A Guide to the Costs of Liquidation

Are you considering liquidation for your struggling business but are unsure of the costs involved?

Do you need help navigating this difficult time? 

Exodus Insolvency are here to help guide you through the fees and costs involved in a liquidation.

By the end of this article, you will have a better understanding of the fee of a liquidation and why it may vary from case to case. 

Liquidating a limited company can be a complicated and expensive process, but it is sometimes necessary when a company is no longer viable. 

Liquidation, for an average case will cost between £3,000 – £6,000 + VAT. However, the cost of liquidating a limited company can vary depending on several factors:

Size and Complexity 

One of the primary factors that affect the cost of liquidation is the size and complexity of the company. A small, simple company with few assets and liabilities will typically have lower liquidation costs than a large, complex company with significant assets, multiple creditors, and legal disputes. In general, larger companies will require more time, resources, and expertise to liquidate, which can result in higher fees.

The Type of Liquidation

Another factor that affects the cost of liquidation is the type of liquidation being carried out. There are two main types of liquidation: voluntary liquidation and compulsory liquidation. Voluntary liquidation occurs when the company’s directors and shareholders agree to wind up the company, while compulsory liquidation is ordered by the court. Compulsory liquidation is typically more expensive than voluntary liquidation because it involves legal proceedings and court-appointed liquidators.

The Liquidator’s Fees 

The fees charged by the liquidator or insolvency practitioner also affect the cost of liquidation. Liquidators are typically appointed by the court or by the company’s creditors, and they charge a fee for their services. These fees can vary depending on the complexity of the liquidation, the size of the company, and the experience of the liquidator. Some liquidators may charge a fixed fee, while others may charge an hourly rate.

The total debt amount owed

Finally, the amount of debt owed by the company also affects the cost of liquidation. If the company owes a significant amount of debt to creditors, the liquidation process may take longer and require more resources, which can result in higher fees. In addition, creditors may take legal action to recover their debts, which can further increase the costs of liquidation.

In conclusion, liquidating a limited company can be a complex and expensive process, and the cost can vary depending on several factors. It is important to seek professional advice before embarking on the liquidation process to ensure that all costs are fully understood and accounted for.

Do you need insolvency help? Call us today: 028 9344 0096

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Gabriela Nester

Exodus Insolvency provided me with exceptional service during a very difficult time in my life. Their team of professionals were knowledgeable, compassionate, and understanding throughout the entire process. They helped me navigate the complex world of insolvency and made it much less daunting. I would highly recommend Exodus Insolvency to anyone who is struggling with debt and needs help getting back on track.

Dee McCallum

I cannot thank Exodus Insolvency enough for the support they provided me and my business. When I realized I was no longer able to keep up with my debts, I was afraid that my business would go bankrupt and that I would lose everything. However, Exodus Insolvency provided me with expert advice and helped me create a realistic plan to manage my debts. With their help, my business was able to survive, and I am now back on the path to financial stability.

Daniel Klein

Exodus Insolvency is a lifesaver! After struggling for years to pay off my debts, I decided to seek professional help. I am so glad that I found Exodus Insolvency. They were able to negotiate with my creditors and come up with a payment plan that worked for me. Their team was professional, friendly, and always available to answer my questions. Thanks to Exodus Insolvency, I am now debt-free and able to enjoy my life without the constant worry of financial stress.

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