Company Voluntary Arrangement (CVA)
A CVA is an alternative to liquidating your company allowing it to trade out of its financial difficulties over a specified period of time
Allows the directors to continue trading whilst maintaining control of the company
Stops pressure from creditors including HMRC and freezes all interest and charges
Your company pays one simple, affordable monthly payment to its creditors
What is a CVA?
A CVA is a rescue procedure which enables a financially troubled company to reach a binding agreement with its creditors about payment of all, or part of its debts, over an agreed period of time.
When is a CVA appropriate?
The company is insolvent in that it cannot pay its debts as and when they fall due or where its liabilities exceed its assets.
- The company is facing financial pressures but wants to avoid liquidation
- The company is confident of being profitable in the future
Process for a CVA
A CVA proposal is drafted by the company directors with the assistance of our Insolvency Practitioner, known as the Nominee. The proposal is sent to the company creditors outlining the CVA and giving them notice of the creditors meeting.
At the creditors’ meeting at least 75% (in value) of the voting creditors must approve the CVA for it to be passed. The approved CVA legally binds everyone to the arrangement whether they voted or not.
The CVA will come to a successful conclusion on or before its 5th anniversary and any outstanding unsecured debt will be written off and the company is legally free from debt.
Once appointed we will
- Collect the monthly contributions from the company
- Agree creditor claims and make distributions
- Ensure that all arrangement terms, including any modifications, are enforced
If you are unsure what situation your business is in, don’t worry! Call our confidential expert advisers on 0800 611 8888
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What our customers say
First of all, I would like to say a BIG Thank You for all of your assistance over the past year. I would not be in the positive state of recovery without Umbrella. Your care and assistance at the application stage last summer, along with the advice throughout the year, has been great. I would not hesitate to tell anyone in my negative situation where to turn to.
I extend my appreciation of your professional efficiency in handling my company business and herewith say thank you.