Company Voluntary Arrangement Polhampton in Polhampton

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