Company Voluntary Arrangement Essex in Essex

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 Essex 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 Essex

Get in touch

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


Skip to

Gallery

Other locations available for company voluntary arrangement essex
Southey Green Watch House Green Brick End Aingers Green Hutton Richmond's Green Helions Bumpstead Tye Green Steeple Pig Street Osea Island Bunting's Green Fox Street Bocking's Elm Runwell Fordham Upshire Swallows Cross Gamble's Green The Ryes Park Green White Roding School Green High Easter Frenches Green Outer Part of Town Westward Little Cambridge Felmore Nevendon Boyton End King Street Chadwell St Mary Mill End Layer-de-la-Haye Buttsbury High Street Green Clatterford End Potter Street Great Clacton Norton End St Lawrence Water End Prittlewell Stebbing Green Salcott-cum-Virley Willows Green Ashen Heckfordbridge Matching Tye Sheering Quendon Hyde Chase Steward's Green Netteswell Newtown Shalford Woodend Green Finkle Green Downham Farnham Green Knowl Green Clay Hills Rushley Green Great Braxted Great Maplestead Thornwood Common Holland-on-Sea Manningtree Skye Green Fobbing Sucksted Green Beacon Hill New Thundersley Long Green Nine Ashes Little Dunmow Belchamp Otten Beauchamp Roding Norwood End Armigers Causeway End Parkeston Wix Green Jaywick Burton End Horsley Cross Sabine's Green Tye Green Navestock Side Young's End Langford Danbury Common Coryton Watton's Green South Ockendon Hornells Corner Lawford Housham Tye Countess Cross Robinhood End Debden Roundbush Green Coopersale Street Low Street Lee Chapel Howegreen Birdbrook Maggots End Borley Downhall Beach Estate Orsett Eight Ash Green Pharisee Green Abridge Monk Street Broad Green Sandon Stow Maries Bamber's Green Ford End Newlands Wicken Bonhunt South Green Heybridge Little Warley Tilbury Rudley Green Takeley Matching Green Little Waltham Ramsey Good Easter Pannel's Ash Heybridge Braiswick Chignall Smealy Galleyend Starling's Green Audley End Radwinter Handley Green Abbess Roding Broadley Common Wormingford Boxted Felsted Great Chesterford Canvey Island Kirby Cross Mount Pleasant Sewardstonebury Langham Wick Oak Corner Grass Green Church End Hook End Ost End Clifftown Eastwood Stapleford Tawney Hickford Hill Rawreth Messing Great Leighs Peartree Green Theydon Garnon Rochford Dobb's Weir Norton Mandeville Harlow Common Craig's End Baker Street Manuden Thorrington Herongate Kingsmoor Writtle Totham Hill Roost End Mott's Green West Bergholt Gallows Green Cooksmill Green Piercing Hill Samuel's Corner Duddenhoe End Hope End Green Nazeing Mead Mistley Heath Ivy Chimneys Langenhoe Gaunt's End Maylandsea Bridge Green Vange Little Walden Pitsea Ingrave Nazeing Long Green Pattiswick Epping Green Cripple Corner Birch Green Lower Sheering Padham's Green Wimbish Green Fox Hatch Mashbury Bedlar's Green Beaumont Great Parndon North End New Mistley Wendens Ambo Mill Green Row Heath Bentley Further Ford End Laindon Chipping Ongar Little Braxted Dewes Green Mill End Hadstock Clapdog Green Hadleigh Little Common Thorpe-le-Soken Belchamp St Paul Loves Green Great Burstead Howlett End Ashingdon Sunnymede Katherines Terling Nether Street Ramsey Island Stocking Green Doddinghurst Bovinger Brookend Shoeburyness Copford Green Tilty Copford Mark Hall North Oxen End Cross End Noak Bridge Start Hill Colliers Hatch Swan Street Threshers Bush Lee-over-Sands Great Bentley Courtsend Brewer's End New England Great Canfield Waterhales Elmstead Market Margaret Roding The Green Hemp's Green Bocking Churchstreet Gainsford End Linford High Laver Berechurch Dyer's End Horndon on the Hill Howe Green Crawley End Little Wigborough Four Wantz Alresford Easthorpe Elmdon Norton Heath Lambourne The High Brick House End Navestock Heath Radley Green Nazeing Gate Ugley Saffron Walden Woodend Bardfield End Green Twinstead Halls Green Breeds Stock Thaxted South Weald Pebmarsh Hatfield Broad Oak Passmores Newney Green Green Street Frating Green Rawreth Shot Marden Ash Little Totham Great Bromley Crockleford Hill Rickling Rivenhall End Great Bardfield High Ongar Margaretting Tye Great Easton Lower Pond Street Goose Green Rose Green Chelmsford Malting Green Greenwoods St Osyth Heath Gallows Green Bentfield Bury Molehill Green Mark Hall South Claverhambury Biggin Springfield Parson's Heath North Stifford Tilekiln Green Mountnessing Woodside Green Philpot End Chelmer Village Keysers Estate Great Hallingbury Kelvedon Hatch Stroud Green Cobbs Fenn Liston Cooper's End Bonhunt Water Great Horkesley Rowhedge Great Saling Church End Crow Green Heybridge Basin Ardleigh Friars Mead Hatfield Heath Bartholomew Green Brickkiln Green Edney Common Hamperden End Wrabness Bradwell on Sea West Thurrock Stocks Green Foxearth Leigh Beck Horseman Side Winter Gardens Mount Bures Little Oakley Ridgewell Ramsden Bellhouse Creeksea White Notley Birchhall Corner Hill Green Dedham Cock Clarks South Benfleet Little Burstead Ardleigh Heath Meadowend Chapelend High Garrett Sturmer Pepper's Green Latton Bush Inworth Barstable Eastend Braintree Little Oxney Green Woodham Walter Churchend Needham Green Bulmer Tye Fryerns West Mersea Great Berry Borley Green Maldon Chapel End Latchingdon Minnow End Shrub End Tye Green Cannon's Green Balstonia Fyfield Widdington Stanford-le-Hope Onslow Green Ringtail Green Mile End Daws Heath Fairstead Clacton-on-Sea Nuper's Hatch Aldham Stagden Cross Little Bromley Broad's Green Langham Moor Clavering Mill Green Wix Mill End Green Sunken Marsh Forrey Green Smith's Green Great Baddow Taverners Green Tinkers Green Battlesbridge Brock Hill Navestock Common Little Bardfield Debden Green Cole End Margaretting Brentwood Gransmore Green Shotgate Harknett's Gate Bustard Green Old Mead Bocking Althorne Kelvedon Coopersale Common Folly Green Blake End Rush Green Earls Colne Southfields Fryerning Castle Hedingham Welshwood Park North Fambridge Lower Nazeing Hallingbury Street Pond Street Perry Green Baddow Park Tollesbury Gore Pit Chrishall Rickling Green Stondon Massey Blasford Hill Elsenham Sta Galleywood Little Mascalls Puttock's End Faulkbourne Theydon Bois Pilgrims' Hatch Tillingham Manwood Green Steeple View Greenstead Green East Mersea Hope's Green Greensted Moulsham Blackcat Hare Green Mount End Frating Bournes Green Hare Street Burnt Mills Cripplegate Tarpots Tiptree Heath Porters Town Copthall Green Ovington Salmon's Corner Boxted Cross Woodham Ferrers Great Holland Brightlingsea Layer Breton Wimbish Catmere End Orsett Heath Pledgdon Green Church End Horsleycross Street Chipping Hill Mallows Green Great Waltham Duckend Green Man's Cross Building End Don Johns South Fambridge Peldon Barrow Hill Bromley Cross Foster Street Broad Green Campions Pigstye Green East Hanningfield Burrsville Park Glen Faba Pipps Hill Farmbridge End Wickham Bishops Dutch Village Southend-on-Sea Little Horkesley Lexden Bradfield Heath East Tilbury Fordstreet Southchurch Frinton-on-Sea Bumble's Green East Gores Hallsford Bridge Dovercourt Cupid's Corner Hawbush Green Tendring Green Roydon Bulphan North Shoebury Theydon Mount Broad Street Green Puttock End Bradfield Landermere Fuller's End Danbury Greenhill Hornestreet Burnham-on-Crouch Pale Green Woodhatch Great Wakering Bannister Green Lucking Street Fanner's Green Chalk End Woodgates End Abberton Boose's Green Sand Hill Rook End Tumbler's Green Ulting Panfield Gooseberry Green Tye Green Gernon Bushes Matching Berners Roding Lower Green Roundbush Brays Grove Birchanger Lindsell Lamb Corner Widford Littlebury Tyler's Green Black Notley Cranes Basildon Fuller Street Stoneyhills Bishop's Green Stewards The Hythe Fingringhoe Point Clear Milch Hill Shellow Bowells Bigods Stapleford Abbotts Bell Common Tip's Cross Canewdon Garnetts Great Oxney Green Cherry Green West Tilbury Berden Rettendon Church Langley Grays Woodhill Great Canney Wickford Ballards Gore Dedham Heath Sewardstone Hobbs Cross Sewards End Steventon End Shenfield Windmill Hill Purfleet-on-Thames Little Tey Gosfield West Horndon Frogs' Green Bran End Mundon Keeres Green Passingford Bridge Weeley Heath Stonebridge Baythorne End Willingale Tilbury Juxta Clare Paternoster Heath Greenstead Monkey Street Long Gardens Burnt Heath Hawkwell Little Thurrock Little Wakering Chitts Hills Farther Howegreen Long Green Tolleshunt Knights Lippitts Hill Sible Hedingham Lower Green Upper Green Coggeshall Hamlet Langdon Hills Great Notley Great Wigborough Blackheath Crays Hill Killem's Green Gubbion's Green Gay Bowers Tilegate Green South Woodham Ferrers Langley Alphamstone Coalhill Stansted Mountfitchet High Roding Thurrock Park South Hanningfield Green Street Chigwell Temple End Doddinghurst Common Dengie Tiptree Grange Hill Stickling Green Wivenhoe Bacon End Lane End Cobbler's Green Ostend Elder Street Cornish Hall End Braintree Corner Oaker Hill Wellstye Green Hartford End Netteswell Cross Moreton Lanham Green Hawkin's Hill Littley Green Westcliff-on-Sea Wiggens Green Delvin End Kingswood Flack's Green Cobler's Green Level's Green Mistley Paglesham Churchend High Houses Stafford's Corner Lambourne End Ugley Green The Common Baconend Green Little Clacton Thundersley Little End Stones Green Canvey Village Little London Tilkey Lower Bobbingworth Green Broomfield Feering Fiddlers Hamlet Great Yeldham Bush End Queen's Park Great Henny Southfields Harlow Asheldham Hastingwood Barnston Brookend Purleigh The Birches Great Tey Toppesfield Hockley High Park Corner Paglesham Eastend Ghyllgrove Epping Upper Green Rank's Green West Hanningfield Whiteash Green Little Chesterford Hawkspur Green Fordham Heath Nazeing Stanbrook Debden Green Hempstead Bradwell Wick Lower Green Kirkby-le-Soken Northend Old Heath Little Baddow Uppend Purton End Great Dunmow Tolleshunt Major Harwich Twinstead Green Great Totham Chigwell Row Horkesley Heath Goldhanger Maple End Old Harlow Childerditch Stambourne Green Black Horse Corner Liston Gardens Hullbridge Crockleford Heath Bradwell Waterside Strethall Littlebury Green Duck End Beggar Hill Duck End Magdalen Laver Mount Bovers Smythe's Green Rayne Boreham Jasper's Green Purfleet Shelley Stanford Rivers South Heath Woodham Mortimer Chatter End Stebbing Colchester Bardfield Saling Bulmer Hazel End Wesley End Cock Green Beazley End Horne Row Little Parndon Bowers Gifford Pinnacles Great Claydons Toot Hill Seawick Beacon End Brookstreet Coxtie Green Wickham St Paul Pentlow Street Little Sampford Gaston Green Seven Star Green Broad Green Oxley Green Coggeshall Weeley Butts Green Chappel Hardy's Green Tolleshunt D'Arcy Newport Little Easton Ardley End Blackmore End Hatfield Peverel Smith's Green Ashdon Roast Green Blackmore Chalvedon St Osyth Little London Howe Street Pleshey Brook Street Tilbury Green Montsale Eversley Corringham Brandy Hole Elmstead Heath Layer Marney Tye Common Great Warley Loughton Henham Chignall St James Hutton Mount Bath Side Middleton Workhouse Hill Totham Plains Chatham Green Tindon End Foxash Estate Thorpe Bay Marks Tey Bentfield Green Morris Green Westley Heights St Vincent's Hamlet Halstead Ramsden Heath Bridge End Churchgate Street Harrowcross Holder's Green Lamarsh Elkins Green Powers Hall End Kirby-le-Soken Elsenham Tylerscross Aythorpe Roding Tye Green Cressing Cutlers Green Belchamp Walter Pentlow Shalford Green Hellman's Cross Keelars Tye Mulberry Green Birch Far Thorpe Green Aveley Raven's Green Little Leighs Pedlars End Lee Chapel North Church End Goose Green Gestingthorpe North End Stondon Green Southminster Mayland Aimes Green Little Laver Mowden Tendring Ingatestone Holyfield Ford End Chalkwell Deer's Green Epping Upland Parney Heath Miller's Green Roxwell Janke's Green Rotten End Little Henny Buckhurst Hill Little Yeldham Runsell Green Rivenhall Wethersfield Great Oakley Little Bentley Tye Green Carter's Green Curling Tye Green Thorpe Cross High Beach Boyton Cross Hobbs Cross Stanway Arkesden Latchmore Bank Jack's Hatch White Colne Crow's Green Mucking Steeple Bumpstead Curtismill Green Wakes Colne Cowey Green Paslow Wood Common Outer Part of Town Eastward Northend Leaden Roding Row Green Billericay Farnham Abbey Field Hazeleigh South Stifford Great Malgraves Clapgate Finchingfield Rayleigh Newman's End Howe Street Gilwell Park Henny Street Great Stambridge Olmstead Green Surrex Sumners Wyatt's Green Witham Noak Hill Chafford Hundred Wakes Colne Green Leigh-on-Sea Greensted Green Nounsley Cold Norton Roydon Hamlet Mill End Howe Green North Benfleet Daw's Cross High Beech Langham Clatterford End Bobbingworth East Horndon Abbess End Waltham Abbey Duton Hill Tendring Heath Temple Fields Rotchfords Radwinter End Suttons Reader's Corner Almshouse Green Little Canfield Waltham's Cross Audley End Lee Chapel South Rowney Corner Little Maplestead Sibley's Green Tye Green Cambridge Town Bradwell Hare Street Stockstreet Upper Dovercourt Chickney Little Henham Loyter's Green Molehill Green Walton-on-the-Naze Upper Pond Street Great Sampford Havering's Grove Clatterford End Thorpe Green Takeley Street Galley's Corner Stambourne Colne Engaine Broxted Butt's Green Warley Breach Barns Dry Street Stisted Bicknacre Burton's Green Barling North Weald Bassett Silver End Coopersale Little Hallingbury