Liquidation of Solicitors

Quantuma, lead the Solicitor Liquidation of Midlands based practice Challinors Solicitors.

Overview:

  • The firm was a 9 office solicitor practice based in the Midlands
  • The company’s records were in very poor order; 21,000 boxes of records at one storage location and a further 2,500 boxes (containing deeds, wills and closed/unbilled files) at another location
  • The Firm was placed into Administration in August 2013 following the transfer of all live files to 23 separate acquiring firms via separate sale agreements
  • At the date of the administration there were a significant number of files, the majority subject to legal aid, where the final billing had not been prepared and submitted to the Legal Aid Agency. The value in these files was in the region of £2million
  • Indebtedness: £4.5m secured


Outcomes:

  • The Liquidators re-archived the Firm’s 20,000 deeds and as a result have been successful in securing a sale of the Firm’s Deeds to a legal practice regulated by the SRA, thus removing significant on-going management costs
  • A specialist cost draftsman has been appointed to assist with the unbilled files and in conjunction with liquidators’ specialist knowledge of distress legal practices and the support of the Legal Aid Agency (“LAA”), has now commenced the billing process and is expecting a surplus from legally aided funded cases in excess of £1million

 

For more information about Liquidations, please click here