Winding up petition court fees and costs are often misunderstood and much of the original court fee can be recovered after the end of a case. Our expert team can help advise.
There are two sets of costs you will incur when instructing law firms to collect debts – their own time costs and “disbursements” such as court fees. However, we are different in many ways.
How we are different to other law firms – over 50% of our clients end up paying nothing at all in legal fees
We are proud to confirm that in over 50% of all cases where we issue a winding up petition for a client, we recover the winding up petition debt, Late Payment Interest, Late Payment compensation and legal costs in full.
This means that the debtor is actually paying all the legal costs – with the net effect that in over 50% of our cases the client pays nothing at all!
Our legal costs
We operate a highly competitive costing offering to our clients which we do not believe any other law firms offer. If you wish to learn more about our costs then please contact the debt recovery team and we can discuss these costings with you.
These consist of:-
- the winding up court issue fee – currently £1,880 (of which £1,550 is the refundable official receivers deposit if the debtor is not wound up).
- process server fee £150 (approx).
- Company House search fee £2.
- advertisement fee in the London Gazette (if required) – £79.40 plus VAT.
- barrister’s costs for attending court (if required) – £150 plus VAT (approx).
Understanding more about the court fee and official receiver deposit
With regard to the winding up court issue fee, it is important to understand that if the debtor is not later wound up (for example the debtor pays up or is clearly insolvent) you will receive back from the court £1,550 of the original £1,880. Therefore, the net cost of the court fee for issuing a winding up petition if a company is ultimately not wound-up in terms of the court fee is currently only £330. This is the official receiver deposit.
- the reason the court fee is £1,880 is that if the company is wound up, the money can be used by the official receiver (the government appointment liquidator) to undertake investigations into the liquidated company and those involved in the management of it.
- it is known as the official receiver’s deposit.
However, it must always be remembered that the purpose of a winding up petition is for a creditor is to try and obtain payment of the winding up petition debt. It is the threat of the winding up petition rather than the actual winding up of the company which results in payment.
We would not always recommend that a company is wound up if it is clear the debt is not going to be paid. By not winding up the company, you would receive back the deposit of £1,550 thus reducing your costs greatly.
Francis Wilks & Jones is the county’s leading firm of winding up petition solicitors. We are genuine experts in what we do. Whether you want to issue a winding up petition or defend one, we are the experts for you. Our knowledge of the relevant winding up petition legislation combined with our day to day experience and team of experts makes us the No 1 choice for companies in need of sound commercial advice.