Comparing MVL Service Providers

Some Insolvency Practitioner are transparent regarding the fees they charge, and make it very clear on their websites. This saves you the time and effort of having to contact the Insolvency Practitioner to find out what they are going to charge you.

There is a wide range of MVL fees charged by liquidators – ranging from around £6,000 to about £800. 

For some directors, price isn’t really a factor in their decision-making process. They are happy to pay whatever they are charged to put their company into MVL.

However, a lot of directors don’t like to needlessly pay more than they have to. Consequently, the fee a liquidator charges will be a key factor in their decision as to who they will appoint for their MVL. That said, as we all know, cheapest isn’t necessarily best.

Some people worry that a low price means they will get a poor service. However, when a liquidator has completed thousands of MVLs, they will have developed efficient processes which enables them to keep the price low. 

When an Insolvency Practitioner is dealing with a large volume of liquidations, they are likely to have obtained a reduced price for the disbursements in an MVL. They should be charging the disbursements at cost, which will keep the cost of the MVL down.

Also, when an Insolvency Practitioner has low overheads, this should be reflected in their fees.

One of the key issues for shareholders of a company in going into a Members’ Voluntary Liquidation is when will they get their money from their company.

Some liquidators offer to distribute up to 75% of funds on the day they are appointed, with the remainder of the balance paid when the tax clearance has been received. This could be 6 months later.

Others will give shareholders 100% of the funds after 35 days from the date the company is placed into liquidation.

As a shareholder, it is your choice which option you’d prefer and then find the Insolvency Practitioner who can offer that service. We find that most directors prefer to have 100% of the funds after 35 days.

There is no need for a face-to-face meeting with your liquidator. The whole MVL process can be done via phone, email and a Client Portal – assuming the Insolvency Practitioner is able to provide all those options to you.

So, you don’t have to appoint a liquidator who is based near you. This is especially advantageous for anyone who lives in the more expensive areas of the country, like London or the South East.

Most directors are busy people and they often work on their MVL in the evenings / at weekends. So, being able to use a Client Portal makes their life much easier than having to call the liquidator in office hours.