Successful Company Voluntary Arrangements
A Company Voluntary Arrangement (CVA) is a formal insolvency process agreed between a company and its creditors where a proportion of debts are often written off and the company agrees to pay back a lower proportion of the remaining debt in regular monthly instalments.
It’s a way for a company to remain trading and restructure itself to hopefully come out stronger and more profitable at the end of the process.
CVA Solutions
We’ll work with you to formulate an achievable repayment plan with creditors based on projected profits, cashflow, assets, seasonality and any other factors we need to take into account.
CVA FREQUENTLY ASKED QUESTIONS
How much does a CVA cost?
It depends on the size of your company and how much you owe to other businesses but usually between £3,000 and £10,000
Can a CVA stop bailiffs?
Yes but only once it has been accepted by creditors. If the bailiff action is imminent or occurred before the CVA is accepted, we can negotiate with them on your behalf.
Can a CVA stop a winding-up petition?
Yes but only when the CVA has been agreed. If the petition is due to be heard before the CVA has been accepted we can ask for an adjournment of the petition.
Will my business remain open with a CVA?
Yes – your business will continue to trade and operate. A CVA is preferable to other forms of administration where your company may ultimately have been liquidated.
Will a CVA be automatically accepted?
The CVA has to receive the backing of 75% of your creditors. If it passes this threshold then it is passed.
How much will I have to pay back?
The amount varies depending on how much you owe and how much your business returns. A profit and loss and cash flow projections will be prepared to determine your contribution.
Can I work out a CVA myself?
No. The CVA requires a qualified insolvency practitioner to administer it and oversee the process.
How long does a CVA last?
A CVA usually lasts about five years but depending on circumstances could be shorter or longer.
Can I still use my business bank account?
Yes – your business bank account remains open and active.
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