Company Voluntary Arrangement Tyby in Tyby

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 Tyby 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 Tyby (Norfolk)

Get in touch

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


Skip to

Gallery

Other locations available for company voluntary arrangement tyby
Bush Estate High Kelling Stratton St Michael Tivetshall St Mary Foundry Corner Bridgham Runcton Holme Thorpe Marriott Roydon Saxlingham Green Hunt's Corner Filby Heath Forncett St Peter Lundy Green Thorpe Abbotts Croxton Kirby Green Wilby Wiggenhall St Mary the Virgin Tilney cum Islington Crostwight Hilgay Hillington Waterden Martham Little Melton Burgh next Aylsham Hargate Boyland Common Panxworth Hilborough Badersfield Pockthorpe Fring Long Stratton Burnham Overy Staithe Seething West Lynn Potthorpe Kettlestone Mill Common North End Hassingham Old Lakenham Reepham Caister-on-Sea Briggate Hickling Green Hainford Hindolveston Lingwood Taverham Sloley Pedham Thwaite St Mary Gillingham Walcott Runham Little Snoring Oby Cucumber Corner Colton Thunder Hill Salters Lode Spa Common Primrose Green Morley St Peter North Green Billingford Topcroft East Raynham Lower Stow Bedon Frost Row Setchey Stonebridge Hevingham West Runton Brettenham Dickleburgh Moor Banham Fundenhall Street Trowse Millgate Short Green Waxham Nethergate Great Fransham Shelton Tilney Fen End Lower Gresham Cliftonville Anmer Copy's Green Sharrington Bustard's Green Moulton St Mary Hethersett Banningham Middle Harling Holly End Barney Wimbotsham Balsam Field Southtown Redcastle Furze Heydon Wormegay Northrepps Lower Street Blakeney West End Bacton Red Pits Southrepps Edingthorpe Thurgarton Lower Easton Cantley Brookville Mautby Foxley Geldeston Great Melton Hardingham Walton Warren Hethel Weston Longville Matlaske St James Oxborough Calthorpe Street Mattishall Burgh East Ruston Cargate Common Wendling Smallworth Southgate Bull's Green Sidestock Thetford Bittering Frankfort Ridlington Surlingham Bale Little Ellingham Lower Street Newgate Larling East Barsham Pulham Market Suton Street Brandon Bank Wickmere Beeston Regis Fairstead Easthaugh Upper Guist Dunton Walcott Green Ingham Great Moulton Mill Green Gorleston-on-Sea Clippesby Sporle Hunworth Intwood Old Hunstanton Witton Bush Green Bradenham Pennygate Sisland Guestwick Green East Runton Pockthorpe Morningthorpe North Creake Easton Hellington Corner East Somerton Dunston Thorpe Marriot Bintree Whittington Stokesby Aylsham Heacham Bellmount Walpole Highway Pristow Green Muckleton Hindringham Necton Trunch Neaton Fersfield Bengate Ingworth South Green Little Walsingham Middleton Lyngate Holme next the Sea Crabgate Witton Itteringham Common Bradfield Heggatt Street Briningham Eccles Road Maypole Green Cake Street Brockdish Buxton Mustard Hyrn Dickleburgh RAF Coltishall Cat's Corner Halvergate West Lexham Langham Fodderstone Gap Toprow Newton East Bilney North Elmham Little Fransham Threxton Hill Ludham Lessingham Wolterton Catfield Forncett End Burgh St Margaret Twyford Kidd's Moor Costessey Barford The Arms Lyon's Green Little Plumstead Gateley Little Barningham Rockland St Mary Feltwell Little Barwick Hardwick Brandon Parva Poringland Coltishall Coston Dunton Patch Sheringham Brisley Newport Great Witchingham Irstead King's Lynn Danemoor Green Toftrees Wickhampton Old Hall Street Worstead Hockwold cum Wilton Craymere Beck Eastmoor Beeston Swardeston Shadwell Barnham Broom Tower End Darrow Green Browston Green Saxlingham Lakenham Downham Market Cley next the Sea Besthorpe North Tuddenham Watlington Wellingham Erpingham Thorpe Walpole Marsh Yelverton Filby Burnham Deepdale Brandiston Carleton Rode High Green Broomhill Low Street Holkham Blofield Little London Arminghall Spixworth Smallburgh Norton Subcourse Paston Green Melton Constable Fengate Bodham Raveningham Little Hale Westgate Hardley Street Hickling Stanford Litcham Kirby Row Great Yarmouth Breckles Houghton St Giles Garvestone Attlebridge Swanton Abbott Watton Green George Hill Kirby Cane Highoak Syderstone South Runcton The Street Butcher's Common North Burlingham Lower Street Stibbard Hamrow Thurton Kirstead Green Deopham Green Little London Burston Guestwick Trimingham Tilney St Lawrence Haddiscoe Egmere Shimpling Little London Hawes' Green Marham Cranwich Methwold Frogshall Tilney High End Lakes End Hunstanton Stratton Strawless Goose Green Burgh Common Anchor Corner Needham Hoveton Woodbastwick Bexfield Deopham New Sprowston Saddle Bow Haveringland Stoke Ferry South Wootton Pettywell Whitlingham Ellingham Lower Bodham Billockby Johnson Street Shipdham Billingford East Lexham Ketteringham Blackwater Colney Hales Shropham Plumstead Green Rushford Kenninghall Heath Chedgrave Mount Pleasant Marshland St James South Burlingham Ormesby St Michael North Lopham Sparham Hellesdon Thurlton Ditchingham Dam Tilney All Saints Illington Drymere Old Buckenham Fincham Houghton Mileham Morton Ashby St Mary Crowgate Street Eaton Wroxham Aldeby Marlingford Great Plumstead Stacksford Whissonsett Tumbler Hill Eastgate Brancaster Staithe Pollard Street Snow Street Gunthorpe Clenchwarton Peaseland Green Saxlingham Nethergate Bedingham Corner Sedgeford Tunstall Tuckswood Honing Walton Highway Lenwade Lot's Bridge Thursford Old Beetley Horsford High Street Thorpe End Bowthorpe Bunwell Blackborough End Walcot Green Piccadilly Corner Foundry Hill Overstrand Great Ryburgh Morley St Botolph Wicken Green Village Newton St Faith Manson Green Mundford Hoe St James' End Bawdeswell Beckhithe Florence Walk New Costessey Hempnall Narborough Shotesham Rockland All Saints Broomsthorpe Stiffkey Aylmerton Freeland Corner Flitcham Field Dalling The Close East Tuddenham Thurlton Links Frenze Barton Turf Upper Brandon Parva Pentney Bunwell Hill Coslany Blackmoor Row Highgate Buckenham Ranworth Runcton Bottom Bird's Corner Narrowgate Corner Swafield Hickling Heath Fulmodeston Thompson Emorsgate Aldborough Potter Heigham Great Bircham Eccles on Sea Wortwell Metton Horningtoft Beighton Gaywood Little Witchingham Skeyton Little Cressingham Wheatacre Helhoughton North Barsham Crowshill Hapton Hempstead Witton Bridge Binham Wighton New Holkham Gimingham Sutton Broadflash Lyngate Northall Green Boyces Bridge Gasthorpe Mill Street New Buckenham Watton Mount Pleasant Hellington Cordwell Bradwell Whinburgh Low Common Hemblington Wereham Keswick Woodrising Cantley Corner Warham East Harling Weasenham St Peter Oulton Street West Dereham Drayton Podmore Baconsthorpe Haverscroft Street Misery Corner Langley Street Upper Hellesdon Shereford Cromer Upgate North Walsham Pooley Street Plaw Field Hopton on Sea Waterloo Shelfanger Carleton St Peter Long John's Hill Roughton Little Thornage Snetterton Heath Upgate Street Broom Green Beetley Cringleford Wiggenhall St Mary Magdalen Reedham Newgate Corner Winterton-on-Sea Ridlington Street Trowse Newton Little Dunham Hackford Bow Street Three Cocked Hat White Horse Common Colby Browick Harling Road Bodney Long Row Wells-next-the-Sea Bircham Newton Swanton Hill West Tofts Baconsthorpe Mulbarton Denton Oulton Mattishall Castle Rising Pound Corner Grimston Deopham Stalland Alburgh Street Stow Bridge Cess Hales Street Burgh Castle Bunwell Bottom Lynford Black Carr Brooke Waterheath North Lynn Thelveton Hempton Hungry Hill Shouldham Thorpe Ringstead Blickling Blackwater Withergate Walpole Cross Keys Lushbush Honingham Harleston Sparhamhill Stalham Green Waterloo Burnham Norton Dumpling Green Cawston Lower Thurlton Scottow North Wootton North Pickenham East Winch Strumpshaw Happisburgh Little London Claxton Keswick Alderford West Raynham Newtown Roudham Weasenham All Saints South Pickenham West Somerton Kelling Lyng Easthaugh Hall Green Sculthorpe Gressenhall Dunburgh Tattersett Emneth Plumstead Toftwood Stanfield East Walton Larlingford Titchwell Dowe Hill Workhouse Common Tatterford Foulsham Meeting House Hill Whitwell Street Morston Silvergate Glandford Sparrow Green Alburgh Crane's Corner Little Green Penny's Green Mill Hill Mile Cross Saham Hills Alby Hill West Poringland Cockley Cley Castle Acre Northwold Spooner Row St John's Fen End Alpington Earlham Rise Fiddlers' Green Babingley Road Green Horsham St Faith Felthorpe Heigham Grove Suffield Park Kenninghall Ragmere Thorpe Row Terrington St John Puddledock Edgefield Street Sea Palling Wood Street Loddon Wiveton Fritton Burnham Overy Town Upgate Upwell Wacton Common Sidestrand Temple Bar Fustyweed Emneth Hungate Dersingham Diss Yaxham Wretton Pudding Norton Rollesby Stow Bardolph Swanton Novers Merton Swanton Morley Weeting Framingham Pigot Knapton Little Hautbois West Newton Dam Green Bessingham Stoke Holy Cross North End Bergh Apton Dereham Great Dunham West Head South Walsham Edgefield Booton Damgate Oxnead Great Hockham Crimplesham Limpenhoe Itteringham Wattlefield Wramplingham Ingham Corner Southburgh Arlington Ditchingham Little London Westwick Earlham Fen Street Pockthorpe Low Tharston Catton Grove Ovington Congham Stody Hingham Baynard's Green Gas Hill Letton Green Scoulton Old Catton Irstead Street Barroway Drove Hyltons Crossways Terrington St Clement Thurning Caistor St Edmund Nordelph Brakefield Green Gayton Thorpe Postwick Skeyton Corner Scole Rush Green Bedingham Green Methwold Hythe Bridge Green West End West Beckham Woodton Hemsby Boughton Clippings Green Clint Green Topcroft Street Starston Barton Bendish Fakenham Silfield Redenhall Low Street Shepherd's Port Cobholm Island Pottergate Street Belaugh Holme Hale Fen Street Flaxlands Tungate Cangate South Green Broadmoor Lordsbridge Caudlesprings Old Brigg Tuttington Langmere Stanhoe Broome Street Crownthorpe Wiggenhall St Peter Scratby Elsing Jordan Green Bushy Common Brumstead Sheringwood Southgate Salhouse Stubbs Green The Ling Primrose Corner Greensgate Upton Green Sandringham Blofield Corner Gaultree East Beckham Richmond Hill Welney Tacolneston Leziate Freethorpe Hempnall Green Forncett St Mary Bawburgh Hill Edingthorpe Green Weybourne Thornham Belton Thrigby Walpole St Andrew West Winch Tivetshall St Margaret Ormesby St Margaret Northacre Ashwellthorpe Bressingham Gresham Caston Upper Street Howe Barmer Shouldham Drury Square Wolferd Green Swaffham Bawburgh Three Holes Suton South Raynham Tasburgh Hemblington Corner Outwell Nordelph Corner How Hill St John's Highway Garboldisham Brinton Fordham Welborne Loddon Ingloss Workhouse Common Chequers Corner Low Common Cat's Common Frans Green Great Green Westgate Street Thickthorn Hall Horsey Corner Denver Church Field Ingleborough Tunstead Coxford Hedenham Costessey Park Horning Themelthorpe Bawsey The Drove Furze Green Silver Green West Bilney Little London King Row Great Barwick Acle Grub Street Orange Row South Creake Rackheath Hockering Wiggenhall St Germans Norton Hill Low Common Holt Great Cressingham Brewers Green Salthouse Great Hautbois South Lopham Pockthorpe Guist Downham West Caister Tottington Waterloo Lower Tasburgh Thuxton Oxwick East Carleton Burlingham Green Kirby Bedon Repps Saxlingham Thorpe Great Ellingham New Rackheath Paradise Snetterton Thornage Scole Common Town Green Great Massingham Gooderstone Anchor Street Horsey Didlington Daffy Green Whitwell Dilham Dockeney Eaton Rise Thorpe Hamlet Collett's Br Brock's Watering Runham Lower East Carleton Rougham Briston Great Snoring Burnham Westgate Alby Westbrook Green Reymerston Brundall Worthing Runhall Fritton Blofield Heath Ashwicken Stalland Common Lamas West Walton Croxton Horstead Hengrave West End Broomholm Cranworth West End Sneath Common Drabblegate Wilney Green The Green Mundham Common Fiddler's Green Salle Damgate Threehammer Common Scarning Southwood Wereham Row Swainsthorpe Saxthorpe South Denes Guilt Cross Cockthorpe Bagthorpe Shingham Letheringsett Bracon Ash Suspension Bridge Rockland St Peter Frettenham Foxhole Toft Monks Burnham Market Upper Sheringham Dam Brigg Brancaster Griston Nogdam End Thorpland Bexwell Tyegate Green Beckett End Bressingham Common Westfield Crossdale Street Pulham St Mary Sustead West Barsham Fundenhall Fersfield Common Ickburgh Wood Norton The Heath East Rudham Heartsease Barningham Green Norton Corner Colby Corner Wash Dyke Park Common Stow Bedon Kimberley Heckingham The Grove Harper's Green West Acre Hanworth Tittleshall Neatishead Thursford Green Roydon Marsham Wolferton North Denes Shernborne Wacton Runham Vauxhall West Earlham Ingoldisthorpe Kerdiston Tottenhill Carbrooke Tyby Aslacton Tottenhill Row Quidenham Queen's Hills Upper Stoke Saham Waite Burgh Stubbs Burgh St Peter Godwick Ten Mile Bank Upper Street Welborne Common South End California Tibenham Wreningham Garlic Street Colegate End Stradsett Colkirk North Runcton St Olaves Hockering Heath Walpole St Peter Felmingham Thorpe Market Flordon Upper Street Harpley Pilson Green Crostwick Stalham Pott Row Brandon Creek Carleton Forehoe Foulden Saham Toney The Lings Fritton Thorpe St Andrew Burnham Thorpe Low Common High Common Shammer Great Walsingham Little Ryburgh West Rudham Newtown Wymondham New Catton Cobbler's Green Etling Green Whimpwell Green Suffield North Barningham Corpusty Blo' Norton Longham South Acre Little Marsh Moorgate Ashmanhaugh Winfarthing Snettisham Hempstead Sprowston Pockthorpe Harris' Green Wicklewood Swannington Gayton Beachamwell Upgate Street Woodgate Calthorpe Southery Brampton Norwich Gissing Ivy Todd Eau Brink North Earlham New Hainford Chapelfield Grove Mundesley South Green Brundish Beeston St Lawrence Little Massingham Thurne Antingham South Lynn Paston Bircham Tofts Earsham Sharp Street Stockton West Harling Wood Dalling Sco Ruston Shepherds' Gate North Green Upton Ringland East Wretham Limpenhoe Hill Newton Flotman Framingham Earl Attleborough Felbrigg Lyng Bramerton Bastwick Fair Green The Common Docking Weston Green Great Green Mundham Tharston Rushall The Banks Hardwick Ashill Happisburgh Common Broome