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.
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.
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.
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
*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.
What our clients say
I engaged Umbrella accountants 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.Brendan N,
Umbrella.UK 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.Alex O,