Company Voluntary Arrangement The Scarr in The Scarr

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 The Scarr 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 The Scarr (Gloucestershire)

Get in touch

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


Skip to

Gallery

Other locations available for company voluntary arrangement the scarr
Wotton-under-Edge Staple Hill Plump Hill Sunhill Shipton Moyne Elcombe Upper Framilode Cockadilly Chedworth Laines Ryton Apperley Ewen Chargrove Stroat Bibstone Petty France Brand Green Winchcombe Boddington Cleeve Hill Pittville Warmley Upthorpe Corse Woodmancote Hawkesbury Upton Coomb's End Malswick Bishop's Cleeve Bridgend Stowe Green Culkerton Milbury Heath Winterbourne Down Tickmorend Neds Top Lower Ley Coaley Claypits Oakhunger Wheatenhurst The Flat Hawcross Tidenham Salperton Nibley Harrow Hill Woodchester Nimlet Walham Moreton-in-Marsh Highnam Woolridge Far Green Phipps Bottom Stanway Woodford Netherton Bagstone Brockworth High Woolaston Hallwood Green Bentham Five Acres Fyfield Lower Wick Castletump Watermoor Yate Rocks Clements End Parkend Highfield Chaceley Stock Abson Cobb's Cross Little Drybrook Upper Oddington Longwell Green Brimpsfield Chipmans Platt Upton St Leonards Hamwell Leaze Yorkley Sedbury Heathfield Cold Elm Blockley Donnington Mayshill Tunley South Cerney Newtown Eggs Tump Dodington Old Bishton Stantway Badgeworth Wyndbrook Milkwall Almondsbury Bromesberrow Heath Ryeworth Church Westcote Ruddle Leckhampton Hardwicke Little Bristol Lower Apperley Wallow Green Alstone Alderley Gossington Bourton-on-the-Water Poolhill Frampton Cotterell Temple Guiting Blakeney Hill Trow Green Frenchay Wibdon Stratton Newent Frampton Mansell Uckington Little Shurdington Eastcombe Lower Chedworth Harescombe Allaston Fishpool Duckhole Frocester Clapton-on-the-Hill Natton Dudbridge Silver Street Pennsylvania Henley Hethelpit Cross Upper Soudley Stanton Dorn Vinney Green Puckrup Bevington High Orchard Tetbury Upton Ruardean Hill West End Little Sodbury Marston Hill Coalpit Heath Morton Winterbourne Arlebrook The Haw Coalway Shortwood Toddington Watermead Down Hatherley Cribbs Causeway Hunt's Grave St Paul's Ingst Crawley Ebrington Forthampton Amberley Upper Soundwell Duntisbourne Abbots Damery Sandpits Stonehouse Frampton Court The Island Dyer's Common Joyford Beach Lower Tuffley The Folly Woolaston Common Easter Compton Itlay Yorkley Slade Littleworth Stratfordbridge Charlton Abbots Nether Westcote Bullo Pamington Stow-on-the-Wold Bradley Stoke Avening Green Bubblewell Hayden Tibberton Barton Gretton Daglingworth Burleigh Springbank St Chloe Kingscourt Smart's Green Green Bottom Primrose Hill Hampen Kingsholm Lower Oddington Lower Lode Kineton Wickwar Alderton Swanley Milton End Kenton Green Littleworth Kilcot Forthay Picklenash Woodmancote Taynton Newport Brierley Anthony's Cross Earthcott Green Longney Sudgrove Blackhorse Waterlane Guiting Power Brockhollands Alstone Willersey Pinfarthings Little Witcombe Brookend Naas Charlton Park Totteroak Northleach Stone Triangle Aylburton Heath End Calmsden Woodbridge Pitt Court Snig's End Staunton Soundwell Foss Cross Watley's End Homedowns The Quarry Henfield Bagendon Daneway New Town Hucclecote Ruscombe Acton Turville Lower Cam Farmington Cross Hill Draycott Bromesberrow Sezincote Elmstone Hardwicke Dumbleton Hudnalls Cowhorn Hill Cutsdean Hewelsfield Common Lowbands Aylburton Common Middleyard Scowles Sling Middle Duntisbourne Bournes Green Siston Common Newland Upleadon Court Hinton Sundayshill Whiteshill Brookend Tredington Tormarton Collafield Mickleton Edgeworth Coleford Hilcot End Norton Robinswood Didmarton Whaddon Cowley Christchurch The Rangers Highleadon Hardwicke Painswick Chase Hill Leathern Bottle The Leigh Ball's Green Boughspring Lintridge Leddington Homestead Moor End Nag's Head Oldbury-on-Severn Prior's Norton Horsley Itchington Elmbridge Bath Street Thrupp Rodley Cranham Coates Ruardean Woodside Catbrain Inchbrook Holywell Coldharbour Nibley Green Ganborough Hanham Green Epney Bagpath Broadrock Barrow Wake Bencombe Postlip Wapley Shadwell Minchinhampton Down Ampney Caudle Green Kemble Hinchwick Stroud Hill Old Passage The Pound Barrow Brookthorpe Wanswell Cam Linden Ganders Green Newnham Harry Stoke Tidenham Chase Chesterton Siston Gotherington Syreford Swineford Oakley Norcote Wormington Bradley Green Falfield Fromebridge Yanworth Cassey Compton Pool Meadow Stanley Aylworth Littleton-upon-Severn Marsh Lane Brockweir Warmley Hill Shipton Oliffe Tresham Andoversford Carterspiece Breadstone Hampton Fields Elmore Churcham Little Sodbury End Grange Village Ashmead Green Kingswood Oldland Common Kingscote Eastleach Turville Windrush Hazleton Aston Cross Slad Newerne Longridge End Cold Aston Tirley Whelford Latteridge Far Thrupp Wotton Redwick Bilson Green Stanley Downton Harleywood Alveston Down Bream Brimscombe Chipping Campden Pitchcombe Poolway Boxwell Cerney Wick Kings Hill Seven Springs Upper Lydbrook Bays Hill Milbury Heath Bisley Whitecroft Pillowell Arlingham Burnt Ash Hardeicke Compton Green Highnam Green East End Rodborough Kingswood Lower Hamswell Gretton Fields Playley Green Yate St Briavels Upper Swell Downend Southrop The Eaves Brownshill Ampney Crucis Double View Holbrook Common Far Oakridge Lower Rea Great Washbourne Kempsford Jeffries Hill Barnwood Over Walton Cardiff Hawkesbury Talbot's End Bussage Stumps Cross Througham The Camp Poulton Kempley Cromhall Common Coney Hill Arle Lightpill Coberley Ruspidge Bowling Green Clifford's Mesne Tutshill Driffield Thornbury Shortstanding Lassington Lower Slaughter Highfields Framilode The Twittocks Redmarley D'Abitot Charfield Green Alvington Coln St Dennis Sandy Lane Staverton Hasfield Prestbury Compton Abdale Townsend Deerhurst Walton Fossebridge Naunton Park Duntisbourne Leer Newington Bagpath Green Street Coltham Fields Moor End Colesbourne Wood Stanway Little Badminton Doynton Hailes Laverton Rendcomb Charfield Hill Quedgeley Wyegate Green Bitton Upper Coberley Shepherd's Patch Longborough Stancombe Ryeford Oldland Nibley Green Mitcheldean South Woodchester Hartpury Whitminster Tilsdown Snowshill Grovesend Little Haresfield Pancakehill Abwell Upper Slaughter Tillers' Green Drybrook Moorslade Great Witcombe Tivoli Kendleshire Bradley Hallen Bishop's Norton Parkfield Longlevens High Brotheridge Bournstream Tarlton Church End North Nibley Nympsfield Little Barrington Stowe Rodford Horwood Riding Greet Churchend Kent's Green Oldbury Naite Woodmancote Middle Street Willis Elm Shorncote Leckhampton Hill Cadbury Heath Hidcote Bartrim The Heath Pullens Green Frampton End Clapton Hillersland Old Sodbury Norman Hill Forest Green North Woodchester Noverton Horsepools Footbridge Woodfield Southend Westbury-on-Severn Woodcroft Paganhill Didbrook Betty's Grave Colethrop Littleford Nupend Frogland Cross North Common Todenham Aust Newton Symonds Yat East Winson Huntingford Lower Redbrook Northfield Kempley Green Cirencester Great Stoke Box Hillend Green Teddington Beverston Ashleworth Berkeley Road Prescott Pillows Green Winstone Batsford Montpellier Engine Common Pucklechurch St Mark's Shipton Fiddington Abenhall Smart's Green May Hill Village Broad Campden Joy's Green Sibland Aston on Carrant Arlington Brockhampton Northwood Green Forwood Gatwick Thames Head Whiteway Rudford Pilning Ready Token The Rocks Longridge Cockshoot Bartlett's Green Blaisdon Salperton Park Selsley Longhope Chaceley Hole Brockhampton Kingshill Wicks Green Chalford Fairmead Warden Hill Synwell New Mills Oakridge Lynch Rudgeway English Bicknor Sherborne Baunton Putloe Mobley Broadoak Littledean Hill Upper Up Egypt Cranham Corner Calcott's Green Compton Greenfield Everlands Parkend Shab Hill France Lynch Nastend Coombe Lower Soudley Shapridge Ampney St Mary Cannop Turkdean Fairview Knave-in-hole Bledington North Cerney Shurdington Four Mile Elm Nupdown Stinchcombe Ayleford Cleevemount Hagloe Awre Crackstone Leonard Stanley Lasborough Tickshill Tytherington Mount Hill Harnhill Staunton Northway Brown's End Awkley Bafford Redinhorne The Purlieu Hinton Lower Hazel Lynworth Ebley Charingworth Blackwells End Green Aston Subedge Town Street Little Washbourne Marsh Common Warmley Tower Eastington The Pludds Ashchurch Twigworth Purton Stowell Westington Bridge Yate Wickridge Street Woolaston Slade Matson Oxenhall Central Lydbrook Uley Buckland Olveston Cowhill Preston Notgrove Berry Hill Woodhouse Down Beachley Whiteway Perrott's Brook The Fence Lower Meend Chipping Sodbury Bibury Bread Street The Reddings Twyning Green Ram Hill Northwick Alderton Fields St Briavels Common Shuthonger Selsley West Mork Fretherne Oakle Street Sevenhampton Oldend Hempsted Chedworth Little London Berkeley Heath Netherhope Whitecliff Shortwood Upper Dowdeswell Cainscross Elton Meysey Hampton Upper Ley Hanham Withington Wymans Brook Fiddler's Green Ellwood Gatcombe Syde Lower Berry Hill Upper Kilcott Shipton Solers Shakesfield Eastleach Martin Bromley Heath Berwick Purton Hill Stroud Green Doughton The Beeches Brimps Hill Kitlye Four Oaks Cockleford Foxcote Windsoredge Rangeworthy Gorsley Tockington Poole Keynes Newtown Aston Magna New Cheltenham Codrington Chatterley Emerson's Green The Hacket Eastington Abbeydale Daylesford Woolaston Hook Street Broadwell Etloe Lower Soundwell Hill End Britain Bottom Somerford Keynes Chalford Hill Long Newnton Tortworth Gaunt's Earthcott Elkstone Haresfield Mount Pleasant The Mythe Preston Cross Saul Readings Bowbridge Stroud Coln Rogers Oldcroft Broadwell Bamfurlong Middle Wick West Littleton Avening Edge End Orange End Wishanger The Tynings Oxenton Evenlode Siddington Iron Acton Elberton Fairfields Great Barrington Glasshouse Plusterrwine Upper Wick Moreton Valence Naunton Great Rissington Adlestrop Stone Hill Evington Nailbridge Over Stanfields Upper Siddington Coombe Hill Benhall Fairford Dunkirk Mangotsfield Buckover Sandhurst Saintbridge Horcott Summerhayes Dixton Greenway Nethercote Icomb Whaddon King's Stanley Hampton Green Theescombe Bledisloe Worrall Hill Stoke Orchard Ruardean Maisemore Bagpath Upper Rissington Newtown Marle Hill Hopewell Hill Smallbrook Wick Ozleworth Lydney Birdlip Ashley Chavenage Green Lower Dowdeswell Boxbush Churchend Palmer's Flat Longford Alveston Lynch Shepperdine Woolaston Woodside Netherend Halmore Little Rissington Hidcote Boyce Farfield Mitton Pilley Oridge Street Oxlynch Farleys End Chaxhill Badbrook Woolstone Ford Quenington Cooper's Hill Nuppend Boulsdon Sapperton Gloucester Clearwell Lower Stone Upper Common Northville Plusterwine Upton Cheyney Woodstock Upleadon Westonbirt Bream's Meend Clanna Overton Tredworth Little Herbert's North Corner Aldsworth New Passage The Scarr Mount Pleasant Highfield Ampney St Peter Golden Valley Innsworth Podsmead Westerleigh Hill Whitfield Slimbridge Townwell Longridge Lower Cockleford Standish Edge Lower Morton King's Green Rockstowes Starveall Filton Walkleywood Upper Morton Tuffley Stanley Pontlarge Coaley Peak Westerleigh Cherington Lower Lydbrook Mile End Condicote Quarhouse Hawling Owlpen Stidcot Upper Cam Marshfield Elmore Back Bournside Tutnalls Hyde Battlescombe Duntisbourne Rouse Hatherley Sheepscombe Beeches Green Lower Common Park End High Nash Botloe's Green Viney Hill Ham Overton Park Potterswood Hystfield Miserden Kemble Wick Weston-sub-Edge Cashes Green Horton Saintbury Newmarket Westrip Kingsditch Park Hill Steam Mills Birdwood Watledge Hamshill Severn Beach Taddington Prior's Park Priding Piff's Elm The Barton Baker's Hill Hilcot Pope's Hill Tortworth Green Tetbury Whiteshill Millbottom Wyck Rissington Knockdown Dymock Leighterton Hester's Way Houndscroft Bulley Battledown Paradise Stoke Gifford Dunfield Cold Ashton Maugersbury Churchdown Willsbridge Brain's Green Wick Rocks Whittington Dursley The Butts Stockend Tirley Knowle Cambridge Cress Green Broom's Green Ham Bourton-on-the-Hill The Moat St Peter's Oldbury on the Hill Tumpy Green Patchway Hewelsfield Hatherop Twyning Lower Swell Deerhurst Draycott Charfield Newleaze St Paul's Bengrove Farmcote Calcot Barnsley Rowanfield Rockness Flaxley Coln St Aldwyns Crossways Wallsworth Ketford Upper Hill Westend Wortley Murrell's End Shaw Common Ablington Chaceley Preston Charlton Kings East End Abbotside Knightsbridge Rockhampton Randwick Three Ashes Huntley Southam Worley Sharpness Uplands Minsterworth Butterrow Tiltups End Cinderford Barton End Blakeney Rooksmoor Rodmarton Crossways Okle Green Cromhall Berkeley Colt's Green Bownham Hillesley Cheltenham Littledean The Park Little London Paxford Badminton Dyrham Dursley Cross Sladbrook Puckshole Hampnett Lower Kilcott Swindon Barton Nailsworth Lechlade-on-Thames Kington Jack's Green Old Down Howley Hambrook Frampton on Severn Up Hatherley Moorend Highfield Tewkesbury Lower Lemington Gillingstool