Profit & loss and cash flow projections will be prepared for your company. From this and your business’ individual circumstances, we’ll determine how much your company can afford to pay at different times of the year. For more information on the process have a look at our article What makes a successful CVA?
When we are negotiating with your creditors, we will reach agreement with any companies that you have outstanding personal guarantees with. This may involve no further payment other than the CVA contribution, although on some occasions, you may need to agree a top up from personal funds.
Employment rights are not affected by voluntary arrangements. If at the time of setting up a CVA, there are outstanding payments due to staff that have left the company, their claims can be included within the CVA, and they may be able to claim from the national insurance fund, after which the fund would be a creditor in the CVA instead.
No. We write to your creditors and notice of the CVA is filed at Companies House, but we do not contact your customers.
No. Under a CVA, your business continues to trade, and as such there is no need to carry out investigations into the directors’ conduct.
Yes. A CVA must be implemented and overseen by a licensed insolvency practitioner.
Usually 5 years. However, this is not set in stone, and depends on the level of debt, and the amount that your company can afford to put into the arrangement
We would look to reach agreement with your landlord in the CVA as well – taking account of whether your business intends to continue from the same premises in the future.
Once the proposals have been sent to creditors, we negotiate with creditors on your behalf. Each unsecured creditor can vote for the value of their debt. Over 75% of votes by value must be in favour of the CVA for it to be accepted. Creditors can also suggest modifications to the proposal.
Yes, your day to day trading doesn’t change. Separate to your normal business, you make the CVA payments to the CVA supervisor, who distributes the monies to your creditors.