Cost effective insolvency support in London
The inevitable result of any recession is that businesses will start to struggle and the volume of insolvencies increase. Consequently, Insolvency Practitioners will have a much heavier workload than they do when the economy is more robust. Contrary to popular belief, IPs do not increase their rates when there is a recession- the rates stay the same whatever the economic climate.
The overall fees of an IP will vary depending upon a number of factors – the type of cases they work on, the size of company they work for and the geographical area they are located in. It is estimated that around 15% of IPs work for large companies where the hourly rate charged can be £300 plus. Practices based in London can charge up to £800 an hour for their services. The vast majority of IPs work in smaller practices where the charges tend to range from £100 to £300 per hour.
So what do you get for your money?
When you engage the services of an IP you will get significant expertise in a variety of capacities. Generally, an IP will act as an administrator, a liquidator, a trustee or a supervisor of a voluntary insolvency arrangement. The role is not just about closing down a business. They are actively involved in the rescue and turnaround of businesses as well as the realising and distribution of assets. The chief responsibility of the role is to maximise on the returns owed to creditors. The IP is then paid their fee from the assets and revenue that is obtained.
Given the wide range of hourly rates that an IP can charge, as outlined above, it pays to shop around if you require their services, especially if you are London-based. If you are based in London and need to engage the services of an Insolvency Practitioner it doesn’t mean that you have to choose an IP that is based in London. IPs are all trained to the same level irrespective of their geography so it could be more cost effective to bring in an IP from further afield who will not charge the same premium rates.
Bridge Newland, based in Rugby, Warwickshire, have many years experience in all aspects of insolvency and have dealt with cases all over the UK. If you are looking for expert insolvency advice in London but can’t afford the premium rates, then call us on 0800 612 6197 and we would be happy to help.