Company Voluntary Arrangement
Company Voluntary Arrangements (CVAs) work in a similar way to Individual Voluntary Arrangements (IVA), although are not as common.
A Company Voluntary Arrangement is an agreement between you and your creditors or shareholders to repay a percentage of debt which is outstanding.
Company Voluntary Arrangements are an alternative to bankruptcy, liquidation or administration and may suit businesses that have been experiencing cash flow problems which left them unable to repay their debts, but is once again trading profitably.
A Company Voluntary Arrangement allows you to continue running your business and prevents liquidation.
The CVA is dealt with by an Insolvency Practitioner who will set out the repayment proposals to each creditor. The creditors can then vote for or against the proposals.
As long as creditors who represent 75% of the total outstanding debt agree to the repayment proposals, then the CVA is deemed as accepted.
Once a Company Voluntary Arrangement has been accepted and put into place, this will then prevent any further action being taken against the company, as it is a legally binding agreement
Other common debt issues:
Administration Orders Attachment of Benefits Attachment of Earnings Company Voluntary Arrangement County Court Claims Charging Order Child Tax Credit County Court Judgement Debt Collection Practices Home Repossession
Joint and Several Liability
Statute Barred Debt
Working Tax Credit