Company Voluntary Arrangement Abbots Worthy in Abbots Worthy

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 Abbots Worthy 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 Abbots Worthy (Hampshire)

Get in touch

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


Skip to

Gallery

Other locations available for company voluntary arrangement abbots worthy
Bitterne Vernham Dean Little Posbrook Newton Valence Colden Common Stone Broad Layings Wickham Common Upper Enham Setley Stony Batter Northington Farnborough Street Brook Chidden Bridgemary Walhampton Ashe Warren Crowdhill Rye Common Southend Bordon Lynch Cufaude Arford Finchdean Tapnage Lower Buckland Chilbolton Down Leigh Park Hyde Street End Upton Pooksgreen Wharf Hill Ashurst Bridge Paulsgrove Stonymarsh East Anton Greatham Lower Wield Halterworth Woodington Wolverton Common Stuckton Upper Common Spearywell Alverstoke Langstone Bransgore Longstock East Boldre Applemore Hillpound Micheldever Herriard Eling Crookham Village Shamblehurst Little Shoddesden Powntley Copse Langley Twyford West Leigh Houghton Lindford Bramshaw Ower Hatt Hill Coxford East Liss West Worldham Bedhampton Brockhampton Chapel Dora's Green Gore End Bradley West Heath Tinkers Cross Hillhead Keyhaven Ladwell Liphook Wintershill Lymore Lee Anchorage Park Hammond's Green Mead End Salters Heath Calshot Warborne Nutburn Worthy Down Brockbridge Bucks Horn Oak Bishop's Waltham Vernham Bank North Warnborough Petersfield Griggs Green Sherfield English Walton Heath Woodlands Newtown Hollington Colt Hill Crux Easton Upper Swanmore Horsebridge Sherborne St John Hambledon Turmer Little London Upper Wootton Stony Heath Abbotswood Colbury Selsmore Shirley holms The Butts Standford Old Portsmouth Stratfield Turgis North Weirs Headley Portmore Ashford Hook Park Estate Swarraton Thornhill Park Burley Lawn Wootton St Lawrence Westwood Park New Town Lower Pennington Lymington Avington Critchell's Green Ann's Hill Kings Furlong Martyr Worthy Tidpit Burghclere Common Polhampton Sheet Burkham Potbridge Egypt Lane End Hardley Ewshot Cricket Hill Pilley Blashford South View Holt Pound Emery Down Well Swanwick Burley Balmerlawn Valley Park Turkey Island Outwick Plaitford Green Bowling Alley West Town Corhampton Lower Exbury Carter's Clay Stoke Common East Wellow Hythe Pondtail West Meon Dilton Crondall Ropley Soke Woodley North Gorley Harbridge Green Frogmore Sway Whitenap Colemore Woodend Hound Green Daneshill Knowle Bentley Titchfield Park Woolston Fullerton Newbridge Steep Marsh Binley Selborne Sherfield on Loddon Church Crookham Hatch Warren Townsend Lyde Green West Wellow Otterwood Birchy Hill Roughdown Lower Brook Northbrook Shedfield Overton Upper Canterton Kent Allum Green Calmore Eastney East Martin Oak Hill Bashley Park Harefield Swanmore Harestock Brighton Hill Westfield South Down Bisterne Fyfield Golden Pot Barton on Sea St Giles's Hill Clanville Bossington Upper Street Kings Worthy Egbury Sparsholt Little Somborne North Street Martin Drove End Palestine Oakley Newtown Dundridge Froxfield Green Andwell Harbridge North Poulner Horndean Flood Street Upper Ratley Bramley Ashton Hoe Furzley Barford Lepe East Aston Bucket Corner East End Wishanger Common Newtown Lyndhurst Testwood Easton Heath End Cole Henley Couch Green Bransbury Foxhills Broughton Soake Tadley Park Gate Millbrook Montgomery Lines Brown Candover Gunville Newtown Hipley St Mary Bourne Chawton North Ripley Waterlooville Dean Hilsea Chilworth Old Village Blendworth Faccombe Heckfield Anna Valley West Ham Lowford Lower Green Burgates Warsash Bulbery Wickham Hillyfields Poulner North Kingston Shawford Cold Ash Hill Boldre Brockenhurst Morestead Widley North Street Highbury Four Marks Drayton Mapledurwell West Tisted Eastland Gate Pitt Quarley West End Abshot Frogham Latchmere Green Highbridge Northney Popley Broadmere Durrants Nursling Hazeley Cadnam Chilton Candover Hawthorn Soberton Brickhill East Stratton Foxcotte Titchfield Hartfordbridge Netley Marsh Headbourne Worthy Wigley Bitterne Park Mount Pleasant Bunstead Downton Elson Awbridge Deadwater Thruxton Burley Beacon Ball Hill Sleepers' Hill Stamshaw Lower Daggons Gable Head South Hayling Little Hoddington Enham Alamein Whiteley South Baddesley Pennington Hook St Mary's Inhurst Cliddesden Newtown Dean Rockbourne Freemantle Newtown Droxford Purbrook Heath Hunton Rushington Old Shirley Brook Sopley Bidden Bevois Mount Ashurst Abbots Worthy Binsted Leckford Laverstoke Fair Oak Green Steventon Charlton Hursley Hill Top Frost Hill Horris Hill Whitchurch Meon Quidhampton Redbridge Hale Danebury Baughurst Sandford Peel Common Red Rice Farlington Oliver's Battery Rowner West Common Picket Post Shirley Dibden Purlieu Wootton Old Alresford Lee Ground Fleet Bartley Conford West Liss Eastleigh Southington Newtown Forton Abbotts Ann Burghclere Anmore Duck Street Tipner Shorley Lower Green Broad Oak Rotherwick Tufton Dunbridge Thornhill Newtown Coombe Hamble-le-Rice Portsea Battramsley Cross Bramshill Picket Piece Portchester Abbotstone Hocombe Empshott Weston Colley Port Solent Kingston Fleetend West End Green Wheat Hold Goodworth Clatford Farleigh Wallop Forton Upper Burgate Ratlake Clayhall Tunworth Tilly Down Tichborne Titchfield Common Thorns Beach New Alresford Old Basing Chilbolton Goose Green Bull Hill Downend Chandler's Ford Cocksford Down Woodside North End North End Wherwell East Tytherley Canada Common Sarisbury Andover Drayton Elvetham Heath Appleshaw Shirley Park Cuckoo Bushes Clanfield Cottonworth Horseport Kempshott Monkwood Totton Litchfield Woodlands Heathfield Fordingbridge North Waltham Hollywater Blackmoor South Gorley Hampton Park Foxhall Bank Swaythling East Dean Sandy Down West Hill Catherington Ropley Dean East Woodhay Purbrook Portswood Curbridge Weston Patrick Stockheath Southampton Brambridge Southwick North Charford Hightown Pamber Green Rotten Green Bailey's Hard Lower Common Hiltingbury Furze Hill Warblington Blackhill Whitehill Knapp Kingsland Place Ogdens Butlocks Heath Owslebury Upper Pennington Pamber Heath Mockbeggar Breamore Bedenham Weston Stakes Over Wallop Woodmancott Worlds End Peartree Green Minley Oakridge Compton End Brown Heath Hightown Furzedown Tote Hill Hillstreet Townhill Park Woodcot Highclere Fratton New Cheriton The Hummicks Sutton Scotney South Farnborough Church End St Cross Denmead Bedford Place Winslade Park Buriton Cupernham Wyck Row Ash Privett Milford on Sea Newtown Brock's Green Ramridge Park Fawley Privett Filmore Hill Hundred Acres Sydmonton Hill Grove East Cholderton Neatham Farnborough Park Old Milton Hatherden Fryern Hill Charlwood Alton Summerlug Stanswood Hartley Wintney Exton Upton The Frenches Great Shoddesden Penton Corner Bucklers Hard Ragged Appleshaw Milton Weston Corbett Mellishes Bottom Bleak Hill Battramsley Weavers Down Greywell Avon Braishfield Sandleheath Linwood Liss Forest Little Basing Brockhurst Upton Grey Grayshott Redbrook Forest Corner Hollington Cross Hazeley Bottom Passfield Park Corner West Dean Cheriton Harefield Long Sutton Southsea Blounce Medstead Empshott Green Marchwood Spitalhatch Lower Froyle Fair Oak Lower Bullington Grateley Charter Alley Dibden Michelmersh Wimpson Nutley North End Bentworth Winchfield Ripley South Weirs Little Ann Water End Lord's Hill Kingsmead Woodgreen Woolton Hill Shipton Bellinger Gobley Hole Holt End Oakhanger Fisher's Pond Whale Island Stoke Charity Badger Farm Sea View Holt Segensworth Hatchet Gate Stonehills Kilmeston Farnborough Moulsham Green Ashmansworth Tadley Hill Warren Corner North Camp North Stoneham Hounsdown Norleywood Kent's Oak Malshanger Thedden Standon Emsworth Havant Kingston Upham Toothill Wildhern Eastrop New Brighton The Holdings Portsea Island Fair Oak Baughurst Common Hinton Little Holbury Linford Upper Bullington Aldershot Woodfalls North Oakley St Austins Hinton Ampner Sandy Balls Maybush Newtown Common Bickton Rake Common Ampfield Pamber End South Wonston Itchen Stoke Viables Ibworth West Meon Woodlands Everton Ocean Village Lee-on-the-Solent Sladen Green Lower Bordean Kentsboro Ashfield Lower Upham Smannell Beckley Upper Slackstead Blackfield Sleaford Hurstbourne Tarrant Hannington Phoenix Green Lower Swanwick Pikeshill Newtown Lopcombe Hammer Bottom Hartley Wespall Brook Hill Shalden Green West End Murrell Green Dipley Winchester Crosshouse Hatch Lovedean Headley Upper Shirley Little London Redenham Keeping Timsbury Custards West End East Tisted Tadley Bottom Blissford Stanmore Stoke Chandlers Green Basingstoke Waltham Chase Glebe Spanish Green Axmansford Foxdown Burley Street Hound Highfield Ashford Hill Redlands St Denys Elvetham Wymering Popham Weston Odiham Penton Grafton Rafborough Sprat's Down Totford Ibsley Lasham Lower Common Bailey Green Prince's Marsh Foulford Wilsom Ramsdean Locks Heath East Oakley Tiptoe Highcliffe Mill Green Netley Hill Midanbury Shobley Newfound The Mint Cove North Boarhunt Compton Fair Cross Wildern Clarken Green North Sydmonton Springvale Netherton Up Green Godshill Wood Heath End Southwood Shootash Romsey Three Ashes Northam Hatch Bottom North Town Kimbridge Lower Turmer Hawkley Warnford Blackwater Adbury Bramshott Chase Upper Froyle Kingsclere Woodlands Winsor Sholing Common Ropley East End Netley Winklebury Upper Clatford Bisterne Close Mill Lane Nichols Town Hawley Lane Wimble Hill Bramdean Upper Kingston South Ham Lower Burgate Fairdown Bagmore Woodcott Soberton Heath Old Netley West Stratton Mount Pleasant Newtown Newtown Pilley Bailey Shalden Hurstbourne Priors Frithend Somers Town Stoney Cross Browninghill Green Wallington Buttsash New Milton Bishopstoke Wolverton Bassett East Meon Aldermoor Nob's Crook Liss Gosport Bellevue Pound Street Wellow Wood Crookhorn Bassett Green Hattingley Nately Scures Vernham Row Frenchmoor Darby Green Isington Whitway Bashley Middle Wallop North Baddesley Middleton West Green Hook The Withies Mullenspond Hawley Seafield Swelling Hill Hungerford Banister's Park Wadwick Bramshott Vernham Street Penton Mewsey Pheonix Green Regents Park Exbury Hatchet Green Chineham Boarhunt London Minstead Meonstoke Soldridge Kimpton Eversley Centre Stroud Hazeley Lea South Warnborough Moortown Lower Farringdon Shortheath Ossemsley Fritham Allbrook Dogmersfield Warren Corner Chalton Mislingford Beech Durns Town Blacknest Curdridge Denvilles The Common Ellingham Ashe Itchen Abbas Houndmills Copnor Kingsclere Kitwood Heather Row Itchen Oakshott Crampmoor Fleet Chilworth Hearn Shirley Warren Hill Head Newnham Stonyford The Close Yateley Northbrook Cowplain North End Hill Brow Lower Slackstead Shirrell Heath Silkstead The Hangers Steep Langrish Bighton Ringwood Stratfield Saye Lower Ratley Portsmouth Fox Lane Buckskin Gritnam Ridge Common Silchester Whitsbury Camdentown Buckland Catisfield Frostlane Farnborough Green Minstead Highways Eastoke Lynch Hill Anstey Beech Hill Goose Hill Cuckoo's Corner Bitterne Manor Godwinscroft King's Somborne Picket Hill Up Somborne Belbins Damerham Waterditch Horton Heath Chilcomb Landport East Worldham Causeway Leagreen Barton Stacey Turgis Green Linkenholt Bowyer's Common Ridgeway Parade Lockerley Furzeley Corner Upper Wield Mottisfont Longparish Bishop's Sutton North Hayling Ovington Court Corner Merry Oak Hill Stubbington Up Nately Bursledon Abbotts Barton Lord's Wood Bishop's Green Fareham Rownhams Fleetlands Winchfield Hurst Hook Park Penwood Godshill Hazeley Heath Stockbridge Ramsdell North Fareham Tot Hill Baffins Wildmoor Newton Stacey Beauworth Stoner Hill Deane Andover Down Littleton Wivelrod Clatford Oakcuts Hill Park Monxton Criddlestyle Crockerhill Ashley Buckland Dummer Brokenford Pound Green Black Dam Westley Hartley Mauditt Polygon Hordle Plastow Green Stoke Bar End Bevois Valley Gilbury Hard Wecock Axford Broadgate Otterbourne Dunley Knights Enham Wittensford Wonston Crawley Copythorne Lordswood Durley Street Anthill Common West Tytherley Dowd's Farm Bramley Corner Wheatley Hoe Gate North Houghton Ibthorpe Winnall Mortimer West End Durley Southrope Swampton Boyatt Wood Rockford Thorney Hill Ower Nashes Green Fulflood Holybourne Racedown High Cross Hedge End Upper Farringdon Botley Ellisfield Old Burghclere Worting Beaulieu Baybridge Weyhill Gundleton Buddle Neacroft Tangley Sholing South Town Headley Down Boorley Green Preston Candover Ecchinswell Newgrounds Frogmore Nether Wallop Freefolk Northfields West Heath Bramley Green St John's Church Gilbert Street The Soke Furzey Lodge Tye Lower Canterton Bagnum Cosham Earlstone Common Rowlands Castle Monk Sherborne Martin Holbury Burridge Hensting Weeke Woodside Ashley Heathfield Bevois Town Church Oakley Amport Little Down Pardown Mengham Hyde East Hill Warnborough Green Canada Crow Pucknall Ashlett Hangersley Compton Funtley Eversley Cross Kingsley Mattingley