Under a Company Voluntary Arrangement, trading continues, and a repayment scheme is agreed with creditors.
A CVA, which is legally binding, aims to allow the business to survive as a going concern, or achieve better realisation of the company’s assets.
The Benefits of CVA
We require no upfront fees. All of the work that goes into implementing and managing the arrangement are usually paid from the monthly contributions, prior to a distribution to your Creditors.
Once the company enters into a CVA legal action such as Country Court Judgements (CCJ’s) or Winding-Up Petitions cannot be initiated or pursued, and the business is protected from all Creditor pressure and legal proceedings, provided you adhere to the terms of the CVA. It also freezes pressure from creditors and HMRC while the arrangement is being prepared
Once the CVA is approved, the business will become more stable and usually this will be reflected in an improved cash flow.
One single affordable monthly payment to the Insolvency Practitioner, who is appointed as the Supervisor, and this payment is distributed equally amongst your Creditors.
No interest or charges from historic debts included in the CVA can be added from the date of approval.