Company Voluntary Arrangement - Insolvency Helpline

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Company Voluntary Arrangement

A Company Voluntary Arrangement (CVA) is a deal between the company and its creditors, which prevents the creditors from taking any further legal action against the company.

A CVA allows the viable company to repay some or all of its debts out of its future profits over an agreed period of time. A CVA is a great business rescue procedure and it demonstrates that you are trying to maximize your creditors interests which will be viewed as positive and constructive by your creditors.

The purpose of a CVA is to rescue the company and protect cashflow and rebuild sales and profits. Once the company is more stable they can then beginning to repay back what they owe over a period of time. The process gives the business a chance of survival by taking the pressure ofF the Directors, whilst leaving them in control of the business.

What do you need to make a CVA successful?

  • A viable business that is capable of making a profit
  • A structured repayment plan, which won't require you to pay too much too soon
  • Appropriate levels of working capital
  • A willingness to make changes to the way the company is run
  • The willingness to work hard to turn around the business
  • To instruct an experienced CVA practitioner

If your business is insolvent, but you believe it is still viable then you need to speak to a professional business rescue expert as soon as possible so that you can take appropriate action immediately.

If a CVA is the right route for you and your business you will need to accept that as part of the process the way your business is run will need to change to ensure that the same mistakes don't happen again and to ensure that the business can survive. A CVA is a long process and many businesses can find it hard work to change and turn around their business, the process is much harder than simply liquidating your business, however if your CVA is successful you will have rescued your business which will make a big difference to your shareholders and employees.

Who can start a CVA?

A CVA may be suggested by the directors of the business or by a liquidator, administrator or a business turnaround specialist if they have been instructed. The whole process usually takes about 7 - 10 weeks and can be started even if a liquidation or administration procedure has begun.


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This website has been written and intended for registered limited companies in the UK only. The site contains general information and resources for limited companies only in financial trouble. Insolvency Helpline only work with limited companies to offer solutions for their business debt problems. Insolvency Helpline cannot offer help or advice any other entity except limited companies. Insolvency Helpline does not advise individuals, sole traders or partnerships seeking debt advice. If you are an individual, sole trader or partnership seeking advice, we recommend using an alternative service.

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