Company Voluntary Arrangement West Howe in West Howe

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 West Howe 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 West Howe (Dorset)

Get in touch

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


Other locations available for company voluntary arrangement west howe
Creech Daggons St Catherine's Hill Hinton Martell East Orchard Buckhorn Weston Knackers Hole Winterbourne Steepleton Pilford Romford Winterborne Whitechurch Lower Blandford St Mary The Folly Broadwindsor Holt Winfrith Newburgh Oborne Monkton Up Wimborne Poole Stockwood Higher Ansty Weston Silton Henbury East Stour King's Stag Bear Cross Cann Common Laymore Lower Kingcombe Mount Pleasant Nether Compton Bishop's Down Tollard Farnham Droop East Lulworth Ash Bingham's Melcombe Clifton Maybank Merley Bournemouth Marshwood Northport Swanage Bagber Blackdown Upwey Pleck Somerford Cruxton Higher Sandford Littlewindsor Huntingford Monkton Wyld Beaulieu Wood Eype's Mouth Winterborne Zelston Highcliffe Langton Matravers Parley Green Glue Hill Ashley Preston Benville Folly Littlemoor Radipole Dottery Cosmore Hardy Country Park Shapwick Buckham Leigh Alderney Foxholes Whitecross Lake West Knighton Stoborough Green Ferndown Adber New Town Hains Filford Bloxworth Ulwell Langton Long Blandford Manning's Heath Coombe Keynes Athelhampton Southbourne Newtown The Mount Crendell Saddle Street Hilton Sydling St Nicholas Clapgate Ensbury Corfe Castle Beaminster Ansty Bryanston Walton Elm Brockhampton Green Piddletrenthide Elm Hill White Lackington Nether Cerne Furzehill Melcombe Regis Tarrant Monkton Wych Alweston Manston Strouden Nuffield Ham Common Seatown Milborne St Andrew Batcombe South Poorton Blandford Forum Higher Kingcombe Grange Estate Bridport East Stoke Old Town Rossmore Whitcombe Cashmoor Beer Hackett Ameysford Littlebredy Stratton Hermitage Furzebrook Ilsington West End Cranborne Westford Hollow Oak Holway Sturminster Newton Rockley Sands Gibbs Marsh Wyke Regis Sandbanks Purse Caundle Waddon Bowridge Hill Higher Melcombe Long Cross Galton Chilcombe Holywell Higher Holnest Lower Hamworthy Hamlet Newton Manswood Chiswell Kinson Cold Harbour Loscombe Rodwell Netherbury Silkhay Fortuneswell Lytchett Matravers Ryall Hazelbury Bryan Moorbath West Stour Kittwhistle Sutton Waldron Furleigh Cross Stubhampton Parkstone Hayes Twyford West Orchard Buckland Ripers Newtown Stinsford Kingston Pleck Tollerford Alcester Hartmoor Gore Talbot Woods Oakdale East End St Ives Bradford Abbas Minchington Wooth Drive End North Bowood Huish Farrington Chettle Dean Park St Leonards Trent East Fleet Higher Halstock Leigh Pig Oak Crab Orchard Herston Shave Cross Hinton St Mary Winterbourne Abbas Melbury Sampford Primrose Hill Meerhay Poxwell Meyrick Park Halstock Birch Close Bishop's Caundle Madjeston God's Blessing Green Holnest Throop Tarrant Launceston Caundle Marsh Lower Holditch Southwell Longfleet Hinton Parva Corfe Mullen Woodcutts Greenham Charminster Pleck Avon Castle Marnhull Gaunt's Common Hincknowle Lulworth Camp Middle Bockhampton Pulham Bradford Peverell North End Moreton East Burton Clift Putton Spyway Binnegar Frome Whitfield Deanland Sturminster Marshall Gotham Turners Puddle Fifehead St Quintin Chilfrome Lower Wraxall Dewlands Common Boveridge Southill Newtown Osmington Worbarrow Bovington Camp Upton Wyke Bincombe Anderson Loders Little Woolgarston Osehill Green Chickerell Atrim Plush Three Gates Rolls Mill Slepe Matchams Three Legged Cross Stalbridge Worgret Gillingham Fifehead Magdalen North Bockhampton Lower Nyland Kington Magna Tiley Todber Puncknowle Higher Eype West Compton The Common Tarrant Gunville Burton Bluntshay Holt Wood Warren West Milton Ranston Tolpuddle Chilbridge Winton Holt Heath Farnham Gussage All Saints Cross Lanes Moordown Camesworth Drimpton Haythorne Litton Cheney Poyntington Waterloo Woodville Easton Avon Common Pillwell Steeple Knighton Walditch East Cliff Goathill Tarrant Keyneston Court Orchard Oxbridge Winterborne Herringston Milton Abbas Winterborne Houghton Cobb West Howe Mudeford Higher Nyland Haddon Hill Stour Meadows Holdenhurst Deanend Moorside Frome St Quintin Packers Hill West Chelborough Wootton Fitzpaine Knob's Crook Portway Hartgrove Crooked Withies Walkford Birdsmoorgate Ridge Nottington Bookham Witchampton Rixon Post Green Kimmeridge Little Ansty Cold Harbour Branksome Park Stoke Wake Broad Oak Church Knowle Sturminster Common School House Thorncombe Sandhills Chalbury Stanbridge West Holme Hogstock West Shilvinghampton Hanford Newland Lydlinch Wraxall West Lulworth Bittles Green Penn Champernhayes Marsh Maudlin Cross Gannetts Warmwell Higher Row Bugley Canford Magna Lulworth Cove Coker's Frome Catherston Leweston Fifehead Neville East Howe West Pulham Stoborough Heath Leweston Langton Herring Weston Synderford Ibberton Verwood Little Canford South Perrott Higher Coombe Notton Lillington Broadoak Minterne Magna Woodbridge Happy Bottom Pleck Woolcombe Rew Dunbury Hopsfield Mapperton St James West Woodsford Wick Talbot Village Mannington Nettlecombe Knighton Stour Row Broom Hill Long Bredy Sharnhill Green West Stafford Allington Charmouth Wimborne Minster East Holme Stallen Higher Whatcombe Beacon Hill Sandford Woods West Cliff Wimborne St Giles Fairmile White Post Chalmington North Wootton Lower Ansty Long Crichel Dragon's Hill Iwerne Minster Fontmell Parva Dudsbury Stourton Caundle Fleet Cattistock East Bloxworth Tuckton Rodden Horton Shitterton Woodbridge Tyneham Hillbutts Cripplestyle Haydon Queen Oak Motcombe Quarr Aller East Melbury Fontmell Magna Hummer Blacknoll Lower Bockhampton Symondsbury Friar Waddon Fishpond Bottom Edmondsham Gussage St Michael West Morden Columbia Farm Braytown West Bourton Stourpaine Merriott Crossways Briantspuddle Ringstead Osmington Mills Melcombe Bingham East Brook North Poorton Bramblecombe White Moor Castletown Belchalwell Street Westham Springbourne Toller Whelme Pleck Green Middlemarsh Redbridge North Chideock Ivy Cross Sleight Whitchurch Canonicorum Horn Ash Tarrant Crawford Woodlands Hooke Upton Sixpenny Handley Belchalwell Canford Bottom St Andrew's Well Charminster East Morden Winkton Creech Bottom Studland Woodsford Whetley Cross Bere Regis Chetnole Dorchester West Parley Guy's Marsh East Creech Bowleaze Piddlehinton Burleston New Town Shaggs Tadden Rivers' Corner Ansty Cross Hurn Durlston Rowlands Shroton Ebblake Stafford's Green Holway Compton Valence Stour Provost Lane End East Chelborough Portesham Throop Okeford Fitzpaine Trickett's Cross Uploders Colehill Shothole West Hurn Glebeland Estate Broadstone Swyre Merry Field Hill Kingsland Littleton Winterborne Monkton Holditch Rushton Charlestown West Bay Alton Pancras Higher Chalmington Merritown Whitefield Grimstone Mosterton Sandford Grove Woodlake Cowgrove Cann Godmanstone Bradpole Woolford's Water Holton Heath Worth Matravers Durweston Templeman's Ash Combe Almer Chedington Horton Heath Pymore Minterne Parva Affpuddle Salway Ash Winyard's Gap Mounters Stalbridge Weston Turbary Common New Swanage Bedchester Caundle Wake Oakley Higher Woodsford Blandford St Mary Muckleford Chaldon Herring Yetminster Colesbrook Cerne Abbas Red Hill Hammoon Lower Eype Iford Rushcombe Bottom Sherborne Melbury Bubb Abbotsbury Rampisham Ham Hill Fiddleford Pidney Westfields Askerswell Camel Green Gaunts Tadnoll Lower Street Lyon's Gate Glanvilles Wootton Hemsworth Quarleston Gussage St Andrew Stanley Green Bourton Southlands Lower Whatcombe Peacemarsh Lanehouse Talbot Heath Langham Southover St Johns Holworth Sandpit Compton Abbas Burngate Holmebridge Stokeford Hill Street Organford Burton Bradstock Poolestown Thornicombe East Stour Common Pimperne Crouch Hill East Pulham West Southbourne New Town Hewood Child Okeford Woolland Upper Parkstone Lower Holwell Winterborne Kingston Cocknowle Newton Peveril Lytchett Minster Stoke Abbott Bourne Valley Beaumont Village New Town Dewlish Margaret Marsh Lower Strode Coombe Hilfield Arne Cobley Moor Crichel Sandhills Pilsdon Watton Stony Knaps Longham East Holton Jumpers Common Pokesdown Friars Cliff Longburton West Bexington Grange Whitmore Sockety Thornford Lyme Regis Frampton Leigh Ashley Heath Steepleton Iwerne Acton Kingston Russell Lake Weymouth Duntish Pallington Bothenhampton Stanpit Lambs' Green Turnworth West Chaldon Muscliff Stoke Water Up Cerne Redlands Henley Netherhay Uphall Pimperne Oathill Mount Pleasant Alum Chine Bettiscombe Branksome Purewell Shillingstone Ashmore Almer Owermoigne Wynford Eagle Bearwood Haydon Townsend Winterborne Clenston Poundbury Holwell Northbourne Ashington Burstock Well Bottom Waytown Tarrant Rawston Tarrant Rushton Canford Heath Buckland Newton Ensbury Park Stone Uppington South Bockhampton Knowlton Portland Port Toller Porcorum Horton Common Chideock Lower Halstock Leigh Hedge End Hound Hill Tincleton Wallisdown Mapperton Hurst Spetisbury Milton on Stour Mappowder Turlin Moor Melbury Osmond Newtown Tarrant Hinton Skilling The Borough Lodbourne Seaborough East Knighton Miles Cross East Shilvinghampton Melplash Yondover Woodrow Lodge Copse Estate Pamphill Sutton Holms Dean Lower Mannington Hamworthy Eccliffe Melbury Abbas Morcombelake Enmore Green Gribb Stapehill Littledown Toller Fratrum Redford Wool Whitcombe Woolsbridge Kitford Adam's Green Puxey Kingston Kingston Maurward Sandford Orcas Charlton on the Hill Norden West Moors South Bowood Harman's Cross Evershot Over Compton Overcombe Sterte Folke Muscliffe Winterborne Came West Melbury Blackwater Canford Cliffs Ryme Intrinseca Woodlands Common Cheselbourne Higher Totnell St Leonard's Farm Park Lewcombe Coneygar Lower Row Wonston Alderholt Boys Hill Blackney Hursey Maiden Newton East Compton Forston Powerstock Higher Bockhampton Coldharbour Corscombe Giddy Green Wareham Portland Bill East Parley Woolgarston Lilliput Marshalsea Park Gate Sutton Poyntz Burton Up Sydling Ham Totnell Higher Wraxall Broadmayne Stoborough Hillbourne Charlton Marshall Kit Hill Creekmoor Leigh Hengistbury Head Pentridge Blandford Camp Coryates Wigbeth Dibberford Christchurch Rew Mangerton Netherstoke Westbourne Chalbury Common Broadwey Winterborne Muston Charlton Down Yewstock Woodyates Winterborne Stickland Puddletown Hampreston Winterborne St Martin Shaftesbury Shipton Gorge Mill Throop Winterborne Tomson Boscombe