0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Dealing with spiralling legal fees

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cash flow problems and raising finance.

Reviewed: 20th June 2019

I can't pay my business legal fees

Business legal fees can quickly grow into significant debt, particularly if you’re subject to complex tax investigations or employment tribunals. If working capital is already under strain, the ensuing financial situation can ultimately threaten a business’ future.

As an example, if your legal fees amount to £750 or more and the debt is undisputed your creditor may be able to take winding up action against you, leading to the liquidation of your company.

What happens when I owe legal fees that my business cannot afford to pay?

If your creditor has unsuccessfully tried to collect payment, they may decide to send a 21-day statutory demand for the debt to be settled in full. If this demand isn’t met it provides official proof that the debt exists, and they may be able to petition for your company’s winding up.

It’s essential to keep communications open and try to negotiate to pay your legal fees in instalments, as although it’s likely to attract additional charges, the extra time to pay your business legal fees can make a huge difference to the overall financial position of your organisation.

What can I do about unpaid business legal fees?

Legal expenses insurance

If you have commercial legal expenses insurance in place you may be able to call upon the policy to pay some or all of your fees. Legal expenses insurance typically covers the legal fees arising from day-to-day operational activities, as well as standalone incidents such as damage to your premises.

Alternative finance

You may be able to secure an alternative form of finance that would provide a boost to your working capital, either in the form of a cash lump sum or regular cash payments through the month.

Company Voluntary Arrangement (CVA)

Company Voluntary Arrangements allow companies experiencing temporary financial problems to get back on their feet. If you can’t afford to pay your business legal fees and there’s more than one debt, we may be able to restructure your debt after formal negotiations with creditors.

Real Business Rescue specialises in business recovery and has professional contacts with alternative lenders around the country. Please contact one of our partner-led team to arrange a free same-day consultation. We work from a large network of offices throughout the UK so you’re never far away from professional help when you need it.

Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners