Why Cheap Liquidations Could Cost You More in the Long Run

Insolvency is a daunting prospect for any business owner, and in a time of financial distress, it’s natural to look for the most cost-effective solution. When searching for help, you might come across companies offering voluntary liquidations for as little as £1,500. While this might seem like an appealing option, the reality is that cheap insolvency services can end up costing you far more than you bargained for.

At Parker Walsh Corporate Recovery, we understand that every penny counts during tough times. However, our liquidation fees start at £4,000 + VAT for a reason: we provide comprehensive, transparent, and professional service without the hidden costs or nasty surprises often associated with low-cost providers.

The Lure of Cheap Liquidations

When facing insolvency, your main goal is likely to close your business as quickly and affordably as possible. It's tempting to opt for a company that advertises rock-bottom prices for voluntary liquidations. What often goes unnoticed is that these low initial fees are rarely the full picture.

Insolvency Practitioners who offer ultra-low rates may recoup their costs by charging you additional fees later in the process. These hidden fees can quickly spiral, turning what initially seemed like a bargain into a financial burden.

The Risks Behind Low-Cost Insolvency Services

There’s a reason why the industry standard for a Creditors’ Voluntary Liquidation (CVL) is higher. A proper liquidation process requires detailed work, including:

• Pre-liquidation preparation: This involves gathering information about the company’s financial status, liaising with directors, creditors, and shareholders, and preparing key documents such as the statement of affairs. These tasks are critical in ensuring the liquidation is done correctly and legally.
• Post-liquidation obligations: Once the company is placed into liquidation, the liquidator is responsible for selling off any assets, collecting outstanding debts, reviewing the conduct of the directors, and distributing funds to creditors.

A firm offering liquidation at cut-price rates often skimps on important aspects of this process, putting you at risk of legal complications, delayed resolutions, and stress that could have been avoided

What’s the Catch?

Cheap liquidation firms often omit key details when advertising their low prices. While they may promise liquidation for as little as £1,500, the costs tend to increase as the process progresses. These can include:

• Unspecified disbursements: Many companies charge extra for tasks like asset valuations, legal advice, or preparing statutory reports—services that should ideally be part of the original fee.
• Post-liquidation fees: Once the liquidation process is underway, additional fees may arise for work that should have been included in the original quote, such as realising assets or investigating the company’s finances.

Why Parker Walsh charge from £4,000 + VAT

At Parker Walsh, we offer transparent and fair pricing. Our liquidation fees start at £4,000 + VAT, reflecting the level of care, attention, and professionalism that we bring to each case. Here’s why we believe this is a fair price for the service we provide:

• Comprehensive service: Our fee covers both pre-appointment and post-appointment work, ensuring that every step of the liquidation process is handled correctly and in accordance with legal obligations. This includes all disbursements and statutory reports, so there are no hidden extras to worry about.
• Professional advice: We take the time to understand your business and your financial situation. Our team provides tailored advice and support to help you navigate the liquidation process with minimal disruption and stress.
• Fair treatment of directors: We don’t rely on aggressively pursuing director’s loan accounts to recover our fees. Instead, we have open discussions with you about your financial position, allowing for commercial and reasonable solutions to be agreed upon, if needed.
• Peace of mind: By choosing a firm with a fair and transparent pricing structure, you can avoid the unpleasant surprises and hidden costs that often come with cheaper alternatives. You’ll have confidence that your liquidation is being handled by experienced professionals who are working in your best interest.

Don’t Be Fooled by Bargain Prices

Insolvency is a complex and serious matter, and it’s crucial to choose the right partner to guide you through it. While it may be tempting to go for the cheapest option available, remember that you often get what you pay for. The hidden costs and potential pitfalls of low-cost liquidation services can end up causing more harm than good, leaving you in a worse position than when you started.

If your business is struggling and you need help navigating the liquidation process, we’re here to support you. Contact Parker Walsh today on 0161 546 8143 or email us at info@parkerwalsh.co.uk for expert advice and a transparent, fair-priced liquidation service.

^{Photo by Thomas Lefebvre}