Company Voluntary Arrangements

Company Voluntary Arrangements may seem daunting and complicated, however National Debt Advice can arrange the whole procedure and allow you to rest assured that you have minimal stress throughout.

What is a Company Voluntary Arrangement (CVA):

A CVA is very similar to an IVA, however a CVA is for companies rather than individuals. It is a legal procedure that enables a company to make a binding settlement with its creditors describing how the company debts and credit responsibilities will be handled.

  • A CVA can be proposed by the directors of the company or an Administrator.
  • The procedure is administered by trained administrators.
  • A revision of the company and where it stands in the current market is made.
  • The proposal is then debated between the directors and secured creditors.
  • After the proposals are complete, a report needs to be prepared by a nominee on the proposals which includes comment on the due diligence they have undertaken.
  • This is to ensure that the CVA proposals are correct, realistic and achievable.

  • The Company Directors remain in control and continue to trade.
  • The company will not incur any further costs or interest as all historic debts are frozen.
  • Cash flow through the business will be eased with suspension of payments.
  • You will only pay what you can afford which makes the repayment flexible.
  • Creditors will have no further power to prosecute.
  • Costs saved through non-liquidation, administration or buy back of assets.
  • Any existing finance the business has can usually be left in place.
  • Court protection for company while creditors consider CVA proposal.

National Debt Advice uses advisers who are trained to give advice on Company Voluntary Arrangements; they can recommend the most appropriate action for your needs – whether that is a CVA or another solution. For more free advice on CVA’s or any other debt related issues, please take a few seconds to fill out the simple enquiry form on this page.

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