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
I engaged Umbrella .UK Insolvency to oversee a Members Voluntary Liquidation for the small consultancy business I've been running. The team talked me through the MVL process, steps and requirements. The paperwork involved was well explained and straightforward, with the initial disbursement of funds handled very quickly and professionally under tight deadlines.
Umbrella Insolvency guided me as sole Director of my small limited company, and the shareholders, through every step of a Members Voluntary Liquidation in a very efficient manner. The steps required were clearly laid out and proactively managed by their licensed practitioner. From first meeting through to an interim distribution of funds to shareholders took only a few days in our case. Thereafter, Umbrella will be managing all of the downstream actions required to complete the process with HMRC and Companies House, through to the final discharge of the company.
Following a personal recommendation, we appointed Umbrella.UK Insolvency to handle the voluntary liquidation of our business (MVL). Tom and his team were excellent, keeping us well informed throughout and working effectively with the company's accountants to ensure all documentation was produced and filed on time. I have since recommended Umbrella.UK to friends looking for similar services and I have no hesitation in recommending them more widely.
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 Insolvency. 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.
Thank you so much for your help with my IVA. As an ex-company Director my life took a downward spiral when creditors from my liquidated company called upon my personal guarantees. I had been treading water for months, ran up credit card debts and borrowed from family. When a creditor instigated bankruptcy proceedings against me I thought I was going to lose my house. I contacted Umbrella.UK Insolvency who stopped all the phone calls and threatening letters. Umbrella Insolvency explained things in a way I could understand. They negotiated with creditors and my IVA went through, now I can sleep at night again and I kept my home. Thomas Fox was extremely knowledgeable and I truly thank him and his team.
I'd just like to thank both you and Tom for your help with the closure of my company. You have been highly efficient and very professional throughout. Thank you.
Before I came to Umbrella.UK Insolvency I was in a bad place mentally due to debt because I believed I would be in my current situation for a long time to come. Umbrella Insolvency walked me through my options and helped me pick the best one. I am genuinely amazed at what they managed to do for me and can now afford to live comfortably, and without the constant worry of debt looming over me.
*We don’t charge for an initial consultation, but it may lead to an insolvency solution where our pre-appointment costs are reimbursed as part of the fee structure that creditors approve.