Company Voluntary Arrangement Mortimer West End in Mortimer West End

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