Company Voluntary Arrangement
A Company Voluntary Arrangement “CVA” is a formal agreement, lodged at court, between a company and its creditors to pay so much back in the pound over a period of generally up to five years. Creditors vote on the CVA Proposal at a meeting and decide whether to approve the CVA. This approach allows the company to continue trading and pay creditors what it can afford, rather than Liquidation which most likely would return a much lower payment in the pound, if anything at all.
After initial discussions you will be sent a questionnaire which has to be completed to enable us to proceed. There will be someone on hand to assist and take you through the process. The completed questionnaire will enable us to assist you with the preparation of a proposal. This is initially sent to the directors of the company for agreement and signature, once agreed it is lodged at court. All of the company’s creditors receive a copy and they vote on the proposal at the meeting of creditors. A creditors meeting is called and once approved the company enters into the CVA and agrees to pay the monthly sum for the period specified, usually five years. Effectively a line has been drawn under all of the company’s debts which have been turned into a reduced payment plan with no interest, allowing the company to trade on.
If you have any questions or require further information about the services we offer, please contact us on 01302 342875.