Free 30-minute consultation|Call-backs returned the same working day
femi@loftusstowe.com|Companies in England and Wales
A validation order application costs a fixed fee of £10,000 to £15,000 plus VAT, depending on the size of the petition debt. The £115 court fee is included, while counsel's fee for the hearing and identity checks are charged on top. I am Femi Ogunshakin, an insolvency solicitor. Your first 30-minute consultation is free, and I confirm the fee before any work starts.
There are three parts: my fixed fee, the court fee, and counsel's fee for the hearing. The fixed fee already includes the court fee. Identity checks for anti-money-laundering purposes are charged in addition.
£10,000 to £15,000 plus VAT, depending on the size of the petition debt. I confirm the figure during or shortly after the consultation, before any work starts.
Indicative fixed fee plus VAT
Currently £115. This cost is included in the fixed fee.
Typically £1,500 to £2,000 plus VAT, depending on chambers, for the barrister who presents the application at the hearing. Payable in addition.
Anti-money-laundering identity checks are also charged in addition. The fee range covers petition debts from £50,000 to £1 million. For a petition debt outside that range, the fee is confirmed in writing before any work starts.
The fee rises with the petition debt, from £10,000 for a £50,000 debt to £15,000 for a £1 million debt. Move the slider to see the indicative figure for your company. The actual figure is confirmed before any work starts.
You do not need to send any papers before we speak. After the call I send you a written proposal setting out the fee, the scope of the work and what I need from the company. The detailed work starts once you decide to proceed and the fee has been agreed. If an application is unlikely to help, I will say so at this stage.
The fixed fee covers the validation order application, from my first review of the petition to the hearing. The written proposal I send after the consultation sets out the exact scope.
A validation order does not settle the petition debt. If the debt is left unpaid, the court can still make a winding up order.
Five steps from the first call to the hearing. The fee is fixed at step two, before any detailed work starts.
Banks usually freeze a company's accounts once the petition is advertised, on the day of the notice or within about 48 hours. From then on, wages, rent and suppliers wait. A validation order gives the bank the cover it needs to release the account.
Payments made after the petition is presented are void if a winding up order follows, unless the court orders otherwise. That is true whether or not the bank has frozen the account. In a winding up, the court can order a director who misapplied company money to repay it.
Routine trading payments, such as wages, rent and suppliers, are regularly allowed in validation orders.
If an application is unlikely to help, I will say so on the consultation. The other options are a Time to Pay arrangement with HMRC, raising finance to settle the petition debt, or placing the company into voluntary liquidation.
Legal fees paid from the company's account after the petition are payments like any other. The same section 127 rule applies to them. Ask me about this on the consultation.
If payroll is days away, say so when you call. I will tell you straight away whether the timing works.
My fixed fee is £10,000 to £15,000 plus VAT, depending on the size of the petition debt. It includes the court fee, currently £115. Counsel's fee for the hearing, typically £1,500 to £2,000 plus VAT, and anti-money-laundering checks are charged on top.
For the company there are four parts: the petition debt, the petitioner's costs, your own legal costs, and any validation order. The court's general rule is that the unsuccessful party pays the successful party's costs, though it can order otherwise. See disputing a winding up petition for how each part arises.
Yes. The court fee is currently £115, and it is included in the fixed fee.
The company is the applicant, so it instructs me and is responsible for my fee. The court has a discretion over costs in insolvency proceedings and can order one party to pay another's costs.
Yes. The first consultation lasts 30 minutes and costs nothing. You do not need to send any papers before we speak. After the call I send you a written proposal setting out the fee, the scope of the work and what I need from the company.
No. Counsel's fee is typically £1,500 to £2,000 plus VAT, depending on chambers, for the barrister who presents the application at the hearing. It is payable in addition to the fixed fee.
A free 30-minute consultation with me to explore your options and protect your business.
The fixed fee, court fee and counsel's fee are set out in the fee breakdown above.
Who you will deal with
Femi O. Ogunshakin
Solicitor, Tax Adviser and Former HMRC Inspector
Validation order applications are a large part of my practice. Most of the petitions I deal with are brought by HMRC, and my time as an HMRC inspector means I know how the petitioning side builds and runs these cases.
You will deal with me directly rather than with an introducer or a case handler. The work is carried out through Nexa Law, where I practise. The first 30 minutes are free.
If your company has received a winding up petition, it is important to act quickly. Call or email me to discuss how to apply for a validation order from the insolvency courts. I offer a free 30-minute consultation to help you explore your options and protect your business.
07867 795 439
Email femi@loftusstowe.com
Prefer a set time? Book your free 30-minute consultation.
Call-back requests are returned the same working day, usually within a few hours. Requests sent out of hours are returned the next working morning.
