Company Voluntary Arrangement Lyndhurst in Lyndhurst

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