Company Voluntary Arrangement Clifton Reynes in Clifton Reynes

Contact Us

Company Voluntary Arrangements or CVAs, as they are also known, are one of the ways in which a limited company, which is classed as insolvent, can pay back their debts to creditors over a fixed period of time.  Insolvency is when a company is unable to pay back their debts as they fall due or if they do not have enough assets to cover its debts, for example, if the value of assets falls less than the amount of liabilities. 

If you think this may apply to you and your company, don’t fret, we can definitely help. If your company is deemed insolvent, then the director no longer has a primary responsibility towards the care of its shareholders but its creditors instead.  It is similar to bankruptcy, but bankruptcy is the term used only for personal debt, whereas insolvency is the terminology used for business debt.

Find Out More

Many companies across the UK find themselves insolvent and every circumstance of insolvency is different to the next.  That is why there are several ways that directors can consider to ensure that the matter is best resolved.  It is recommended that companies seek sound advice to ensure that the best solution is chosen, and this should be chosen sooner rather than later. 

There are in fact four different procedures to consider if you feel as though your organisation is heading towards insolvency that may help rescue the situation before it gets bad.  These include Administration, Administrative Receivership, Liquidation and finally, as discussed below, Company Voluntary Arrangements.   This is one of the lesser known insolvency procedures available for businesses.

What is a Company Voluntary Arrangement?

A Company Voluntary Arrangement is an agreement with your company’s creditors to allow more time to pay back debts. This is a legally binding agreement as it stands and 75% of creditors, by value, must support the proposal, otherwise it will not be approved. 

After the proposal has been approved by all involved, any unsecured creditors are bound to it and your limited company can continue trading, even those creditors that did not vote (by choice or no notice) have to act within this arrangement.   Therefore, no unsecured creditors are able to take legal action against your organisation outside the CVA.

It is certainly one of the most flexible insolvency methods available as, apart from the procedure and content of your proposal, which are both dictated by law, the rest of this arrangement is determined by the company, with the hope that the creditors will agree to it. 

Unlike other procedures which may be considered, this has no effect on employee contracts so jobs can be saved, unless redundancies are a necessary part of the procedure, for example, during a restructure.

The arrangement will usually last over a period of 3-5 years and is closely monitored by a licensed insolvency practitioner who acts as a supervisor to the arrangement.  The time agreed on will help the business to repay all or some of its debts whilst still trading and remaining under the management of its own directors. 

How Much Does a CVA Cost?

A CVA can only be granted through an insolvency practitioner who not only charge for the application process but also the administration process.  It is difficult to say exactly how much the Company Voluntary Arrangement will cost as each case is unique and varies depending on total number of creditors, employees, position of the bank and what level of negotiation is needed. 

There are many people involved within the arrangement, and that does mean that a lot of communication needs to take place between not only to the company and its creditors but also the company’s stakeholders.  Like many other insolvency procedures, the sooner the ball is rolling the easier, and cheaper, the case can be to handle.  Professional insolvency practitioners can give you an idea of cost once they fully understand your company’s financial position.

Pros and Cons of a Company Voluntary Arrangement

Pros

·         Can improve cash flow within a short amount of time

·         Pressure from tax, VAT and PAYE is lifted whilst the agreement is being prepared

·         Company remains operational as a separate legal entity and managed by its existing team

·         Business contracts, accreditations and licenses are likely to be unaffected

Cons

·         It is possible that there may be disagreements over the proposed CVA between directors.

·         If a single creditor makes up a large percentage of the company’s debt, then they have a strong position to negotiate deals on their terms

·         It will have a negative effect on company’s credit rating and obtaining future credit may be an issue well after the arrangement has ended.

·         The arrangement does not legally bind secured lenders, so they can still take legal action.

CVA Process in the UK

The application process for a CVA in the UK can only begin if all the directors or members agree and this must be done with an insolvency practitioner.  The insolvency practitioner will then start to work out a plan and arrangement as to how much debt the company can pay back and a payment schedule to ensure this is achieved.  This must be completed within a month of being appointed to supervise the CVA.

One the arrangement has been written up, the insolvency practitioner will write to all creditors and provide necessary information and invite them to vote on it.  As mentioned earlier, for the Company Voluntary Arrangement in Clifton Reynes to be granted, it must be approved by creditors who are owed at least 75% of the debt.  If this cannot be achieved, then the company may face voluntary liquidation, whereby its assets are used to pay off its debts, the business will stop trading and will be removed from the companies register at Companies House.

If the voting is successful and works in the company’s favour, then the scheduled payments must be made to the creditors via the insolvency practitioner over a set amount of time and until the agreed amount is paid off.

Get In Touch

We cover Clifton Reynes (Buckinghamshire)

Get in touch

We aim to get back to you in 1 working day.


Skip to

Gallery

Other locations available for company voluntary arrangement clifton reynes
Brinklow Hoggeston Church End Shipton Lee Bierton Middle Green Buckingham Lower Pollicott Chessmount Tylers Green Holly Green Bye Green Marsh Gibbon Ham Green Tatling End Water Eaton Aston Abbotts West End Shabbington Great Kimble Cores End Fulmer Lower Ascott The City Bradwell Foscote Brook End Haydon Hill Greenlands Stewkley Dean Bourne End Saunderton George Green Neath Hill Oving Great Missenden Weston Turville Littleworth Corner Great Linford Pednor Bottom Upper Hartwell Pitchcott Newlands Worminghall Danesfield Wexham Street Elmhurst Naphill New Bradwell Iver Heath Codmore Whitchurch Singleborough Blue Bridge West Wycombe Forty Green Dadford Preston Bissett Burroughs Grove Heelands Lent Steeple Claydon Wing Hughenden Valley Hyde Heath Stantonbury Woughton on the Green California Stoke Poges Penn Street Fullers Slade Bradville Green End Willen Lake Studley Green Rose Hill Stratford Fields Ilmer Ashland Middle Weald Bockmer End Bledlow Buckland Common Whaddon Hambleden Manor Park Stoke Goldington Oakley Wycombe Marsh Aston Clinton Holtspur Boveney Stoke Green Tyringham Lacey Green Horton Wharf Cadmore End Fenny Stratford Clanking Furzton Lee Clump Flowers Bottom Love Green Redmoor Bradwell Common Padbury Clifton Reynes Frieth Bradenham Ascott Terriers Waterside Elfield Park North Lee Walnut Tree Biddlesden Dorton Petsoe End Grange Farm Horsenden Bucklandwharf Wolverton Mill East Orchard Leigh Rotten Row Austenwood North Marston Towerage Marlow Bottom Egypt Cuddington Tilbrook Lillingstone Dayrell Wendover Dean Northend Spurlands End Lake End Penn Bottom Widmoor Longwick Poundon Lillingstone Lovell Marlow Common Ditchfield Halton Far Bletchley Wolverton Mill Southend Tyler's Hill Rush Green Winchmore Hill North End Aylesbury Bletchley Fawley Pheasants Lavendon Wavendon Walton Manor Fox Milne Fort End Blakelands Caldecotte Furzton Lake Broughton Westbury Twyford Booker Edlesborough North Crawley Brook End Tetchwick Stoke Mandeville Cold Brayfield Alscot Horton Mursley Bragenham Crownhill Chackmore Wolverton Mill South Salden Crownfield Chilton Olney Swan Bottom Stony Stratford Amersham Butler's Cross Downley Eaglestone Pitstone Green Greenleys Littlecote Sedrup Ellesborough Upper Pollicott Chesham Burnham Askett Peartree Bridge Shenley Church End Haddenham Buffler's Holt Greatgap East Burnham Browns Wood Hilltop Stoke Hammond Upton Drayton Beauchamp Calverton Willen Beanhill Lower Cadsden Hollingdon Weedon Maids Moreton Gibraltar Bottrells Close Asheridge Wilton Park Downhead Park Pednormead End Griffitts Yard Chisbridge Cross Stone Ickford Mill End Monks Risborough Chicheley Wroughton Park Stokenchurch Thornton Newport Pagnell Meadle Chesham Bois Green End Hardmead Seer Green Drayton Parslow Crafton Nash Lee Heath End Bryant's Bottom Saunderton Lee Cressex Chenies Speen Leckhampstead Walton Emberton Middleton Great Kingshill South Heath Victoria Park Smokey Row Medmenham Radclive Lee Gate Mobwell Haversham Wardrobes Fern Bishopstone Nearton End Weston Underwood Old Wolverton Little Kimble Watermead Page Hill Downs Barn Wheeler End Church End Nup End Walter's Ash Farnham Common Newtown Grendon Underwood Mundaydean Bottom Stewkley Leadenhall Oxley Park Heath End Warrington Tickford End Hawridge Ravenstone Marsworth Woolstone Iver Grove Waddesdon Ivinghoe Aston Ludgershall Linden Village Shenley Wood Little Wood Corner World's End Great Holm Broughton Bury End Tattenhoe Ballinger Bottom Medbourne Sills Yard Nash Gayhurst The Bowl Tathall End Parslow's Hillock Middle Claydon Summer Heath Marsh Ashley Green Willen Park Terrick Hodge Lea Langley Corner Latimer Milton Keynes Tinkers Bridge Moor End Radnage Water Stratford Wymbush Chalfont St Giles Kingswood Lye Green Cryers Hill Turweston Kimble Wick Whitney Amersham Old Town Central Milton Keynes Beacon's Bottom Wooburn Green Ashendon Northfield Campbell Park Great Brickhill Buckmoorend Nether Winchendon Widmer End Lower Hartwell Atterbury Stonebridge Long Crendon Barley End Bow Brickhill Marlow Wendover Goddards Mantles Green Loughton Bennett End Botolph Claydon The Lee Hillesden Hamlet Bovingdon Green Monkston Little Kingshill Oldbrook Hunt's Green Hedsor Upper Winchendon Fingest Milton Keynes Village Hedgerley Little Chalfont Soulbury Little Marlow Wavendon Gate Newton Leyes Westlington Church End Rowsham Tingewick Holmer Green Lane End Skirmett Mentmore Dunton Farnham Park Rout's Green Moor Common Green Hailey Bolbeck Park Layters Green Berryfields Higher Denham Baker's Wood Moulsoe Jordans Easington Wolverton Old Farm Park Winslow Wooburn Common Ballinger Common Denbigh West Forty Green New Denham Hedgerley Hill Penn Little Horwood Aston Sandford Kingsmead Quainton Boarstall Beamond End Beaconsfield Pond Park Startop's End Ledburn Mount Pleasant Little Boys Heath Woburn Sands Hanslope Turville Heath Berghers Hill Lower Bois Fleet Marston Richings Park Woodham Stratton Chase Amersham Common Waterend Oakhill Shipton Barton Hartshorn Gerrards Cross Dorney Knotty Green Addington Townsend Kingston Springfield Akeley Little Linford Redland End Pheasant's Hill South End Loosley Row Fishermead Pitstone Hill Chearsley Owlswick Bledlow Ridge Westcott Lower End Calvert Coleshill Northall Beachampton Edgcott Horn Hill Hunt's Hill Giffard Park Cholesbury Caldecote Bancroft Ford Lower North Dean Little London Little Crawley Walton Newton Blossomville Whiteleaf Sheepridge East Claydon Bancroft Park Church End Adstock Bedgrove Tongwell Flackwell Heath Chalfont Common Horsleys Green Darvillshill Broughton Crossing Parmoor Amersham on the Hill Bellingdon Hulcott Fawley Bottom Lee Common Kents Hill Sands Sprig's Alley Wingrave Filgrave Church End Two Mile Ash Granborough Lower Weald Long Street East End Rooksley Woodhill Colstrope Stony Green Dinton Little Frieth Hollybush Hill Southcourt Little Hampden Prestwood Princes Risborough Hazeley Buckland Pitch Green Thorney Honeyburge Linford Wood Farnham Royal Lathbury Westcroft Bolter End Sherington Walton Court Piddington Lent Rise Burcott Fulwell Bradwell Abbey Knowlhill St Leonards Slapton Dorney Reach Hyde End Castlethorpe Mop End Wotton Underwood Gawcott Newton Longville Conniburrow Dagnall The Badgers Little Missenden Taplow Kingsey Chetwode Lenborough Tinkers End Botley Micklefield Quarrendon Whelpley Hill Little Ickford Wood Green Great Hivings Verney Junction Monkston Park Shenley Lodge Emerson Valley Hillesden Pennyland Shreding Green Hedgerley Green Coffee Hall Upper North Dean Wooburn Saunderton Chartridge Hotley Bottom Great Horwood Hitchambury Littleworth Common Upper Weald Astwood South End Cheddington Kingsash Wooburn Moor Creslow Shenley Brook End Hardwick Coombe Chalfont St Peter Thornborough Clayhill Winterhill Simpson Little Brickhill Well End Ibstone Woughton Park Chalkshire Ivinghoe Charndon Ley Hill Stacey Bushes Netherfield Diggs Loudwater Skittle Green Walton Hall Swanbourne Pitstone Turville High Wycombe Dunsmore Shalstone Chivery Brill Burcott Chalfont Grove Rockwell End Lower Woodend Cublington Woodrow Great Hampden Denham Kiln Farm Bleak Hall Hazlemere