How our insolvency solicitors can help
Facing insolvency can feel like a lot, but you don’t have to go through it alone. Our expert insolvency solicitors are here to guide you every step of the way. Here’s how Lawhive can help:
Assessing your situation and options | Sorting out financial challenges can feel daunting. Our solicitors will take a deep dive into your situation to find the insolvency solution that fits you best. Before jumping into formal insolvency proceedings, we’ll work with you to explore alternatives like restructuring debt or negotiating new repayment timelines with creditors. |
Preparing and filing insolvency documents | If insolvency proceedings are the way forward, our solicitors will handle the paperwork from start to finish. They’ll make sure everything is spot on - clear, accurate, and fully compliant with court and regulatory standards - so you can focus on what’s next. |
Advising directors | As a company director, navigating insolvency comes with big responsibilities. We’ll help you understand the risks of insolvent trading and your legal duties, giving you the clarity you need to act with confidence. |
Negotiating with creditors | We know how tricky creditor negotiations can be. That’s why our insolvency lawyers can step in to explore better repayment terms, reduced interest rates, or extensions that could give you the breathing space you need. |
Protecting your interests | Your peace of mind is our priority. Our licensed insolvency solicitors offer practical advice on safeguarding your personal assets and making smart financial decisions, always with your best interests in mind. |
Why choose Lawhive for insolvency legal advice?
At Lawhive, we’re here to make finding insolvency support simple, fast, and stress-free. With a network of experienced solicitors across the UK, we’ll match you with the right expert to guide you through your unique situation. Here’s what makes Lawhive the best choice:
Expert insolvency support: We connect you with solicitors who specialise in insolvency law. Whether it’s personal or business-related, you’ll get advice from someone who truly understands your situation and knows how to help.
Clear and upfront pricing: No hidden fees, no surprises. You’ll receive a fixed-fee, no-obligation quote from the start, so you can plan with confidence.
Affordable expertise: We’re committed to making legal help accessible. Our fees can be up to 50% lower than traditional law firms, giving you high-quality support at a fair price.
Fast connections when it matters: Facing insolvency can feel urgent. That’s why we’ll match you with a commercial solicitor in as little as two working days, so you can get the help you need when you need it.
How much does an insolvency law solicitor cost?
Solicitor fees can vary depending on the complexity of your case and the level of support you need. With Lawhive, we can provide you with a free, fixed-fee quote for all the legal help you might need. Typically, an insolvency solicitor charges for services like:
Insolvency filing and processing fees
The filing and processing of insolvency also comes with standard fees. In the UK, the fee for filing and processing insolvency differs depending on the procedure you opt for.
Debt Relief Order (DRO): For DRO, you are not required to pay any application fee as long as the money you owe is less than £50,000 and you have no assets.
Liquidation: The cost of liquidating a company depends on its size and the case's complexity. You can expect fees of £4,000 to £5,000 for a small company. However, for larger businesses, these costs will increase proportionally.
Company Voluntary Arrangement (CVA): If your company is insolvent, on average, you'll need between £5,000–£10,000 to file and process it.
Individual Voluntary Arrangements (IVAs): If you are self-employed and insolvent, the insolvency practitioner assigned to you will charge you around £5,000 or more to file and process it.
Types of insolvency explained
Understanding the different types of insolvency can help you make informed decisions if you’re facing financial struggles. Here’s a breakdown of the main options:
Corporate insolvency
If a company finds itself in situations where debts become unmanageable, there are several insolvency procedures that may help resolve the issue:
Administration: In an insolvent company, an administrator may be appointed through an administration deed. The role of the administrator is to manage the assets and entire operation of the company on behalf of the creditors until the company recovers fully. However, if it doesn’t look like the company will recover, the administrator may also sell it to new owners or demerge it.
Company Voluntary Arrangement (CVA): This option, which is often called rescue and restructuring, is another alternative for companies in insolvency. It involves a formal arrangement between a company and its creditors. The debtor will enter a legally binding agreement with their creditor(s) that they will repay their debt in full or in part over time.
Liquidation: This might be a viable option if you have completely given up on your company. Liquidation, also known as winding up, ends a company's operations and distributes its remaining assets to creditors and shareholders.
Personal insolvency
Businesses are not the only thing that may become insolvent; individuals who take out loans but cannot repay them for one or the other may also be subjected to that harsh reality. If this personal insolvency affects you, you may follow any of these procedures to ensure that you settle your debts and not go bankrupt:
Individual Voluntary Arrangements (IVAs): This procedure is similar to a CVA in that a debtor enters a legally binding agreement with the creditor so that instead of filing for bankruptcy, the debtor is allowed to keep trading. The individual is allowed to pay only what they can afford for a certain amount of time, and once the arrangement is over, the remaining debt is written off.
Debt Relief Orders (DROs): If you are in the UK, you can also apply for a Debt Relief Order (DRO) to cancel your debt if you cannot repay it. This procedure is only available to individuals who don't make much money and whose debts are not that significant (usually £50,000 or less). DRO directives last for 12 months, and creditors will not take any legal action against you in those months.
Insolvency solicitor process overview
The insolvency process can be complex, but it essentially involves taking structured steps to address unmanageable debt.
1. A financial health check
Before deciding on insolvency, you (or your solicitor) will review your finances to figure out the best path forward. The options? Repay your debts in full, formally file for insolvency, or work with your creditors to explore alternatives like restructuring.
2. Bringing in an insolvency practitioner (IP)
If insolvency is the best choice, the next step is appointing an insolvency practitioner to oversee the process. Depending on the situation, the IP can be chosen by creditors, company directors (for voluntary liquidation), or the court (if the company is winding up).
3. Filing for insolvency
This step involves submitting all the right documents to Companies House or the court. Your insolvency lawyer will make sure everything’s prepared perfectly to keep the process smooth and avoid delays.
4. Managing debts and assets
Once insolvency is underway, the focus shifts to resolving debts. This might mean selling off assets to pay creditors or negotiating alternative repayment terms. Your solicitor will guide you through this, helping manage asset liquidation or representing you in creditor negotiations.
5. Wrapping up and moving on
When debts are resolved and agreements are met, the insolvency process formally closes. From here, your solicitor can help you rebuild, offering advice on improving your credit score, cutting unnecessary costs, and planning for a more stable financial future.
What are your next steps?
Insolvency is a complicated and emotional process, but with the right help, you can successfully navigate it. At Lawhive, our team of insolvency law solicitors provides tailored solutions to protect your assets and support you through financial challenges.
Contact us today for expert legal advice on managing your insolvency and moving towards financial recovery.
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