Company Voluntary Arrangement Depden in Depden

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 Depden 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 Depden (Suffolk)

Get in touch

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


Skip to

Gallery

Other locations available for company voluntary arrangement depden
Chippenhall Green Sotherton Corner Black Street Genesis Green Withersfield Great Wratting Bradfield St George Bleach Green Castling's Heath Harkstead Thurston Planche Trimley St Martin Malting End Mole Hill Alderton Bull Green Brockley Green Westleton Wilsey Capel St Mary White Horse Corner Weston Icklingham Wangford Snape Iken Stradishall Coopers Corner Capel Green Stow's Hill Mount Pleasant Dennington Hall Earl Soham Peasenhall Scotia Drift Wrentham Cock and End Darmsden Worlingham Saxtead Stock Hill Kessingland Beach Cranmer Green Wissett Wyverstone Tostock Rotten End Timworth Ilketshall St Andrew Oaks Tye Mill Hole Eye Culpho Stanwell Green Baylham Woolpit Heath Drakestone Green Mile End Cookley Street Benhall Street Kennett End Hibb's Green Carlton Colville Whatfield Rodbridge Corner Baylham Stone Broadway Chattisham East Barton Bredfield Back Street Great Wenham Ashfield Cum Thorpe Bridge Street Annis Hill Swilland Sweffling Norton Little Cornard Sherbourne Street Fornham St Martin Little Livermere Saxtead Green Hengrave Almshouse Green Pitcher's Green Slough Hill Sibton Green Mendlesham Coney Weston Assington Green Finningham Campsea Ashe Upper Street Stratford St Mary Lower Hacheston Aldham Clare Great Green Gedding Gibraltar Barking Braiseworth Newton Blundeston Felixstowe Ferry Great Welnetham Framlingham Stonham Aspal Edwardstone Bures Fingal Street Shotley Common Brightwell Stanton Barrow Lawshall Darsham Ashfield Green Longfield Green Brockford Street Round Maple Thornham Magna Ipswich Bury St Edmunds Great Glemham High Street Mendlesham Green Brampton Street Rushbrooke Crackthorn Corner Flempton Kesgrave Cargate Marlesford Battlesea Green Martlesham Heath Hemp Green Erwarton Swingleton Green Reydon Smear Levington Maidenhall The Street Sternfield Bedingfield Chevington Eriswell Great Green Falkenham Clopton Green Knodishall Stone Street Moulton Redlingfield Brackenham Corton Upper Street Beccles Great Waldingfield Offton Hollybush Corner Uggeshall Ilketshall St Lawrence Claydon Bowbeck Wangford Hawstead Gromford Culford Great Finborough Sutton Theberton Wordwell Benacre Page's Green Wingfield Boardy Green Rishangles Brockley Rickinghall Nayland Friday Street Snape Watering Friday Street Wilby Homersfield Daisy Green Elveden Borley Green Hessett Calais Street Mill Hills Combs Great Saxham Goddard's Corner Otley Green Mells Wetherup Street Blacksmith's Green West Row Rede Hinderclay Poslingford Corner Falkenham Sink Maypole Green Raydon Pound Green Otley East Green Newtown Santon Downham Hobbles Green Rushmere St Andrew Friston Moats Tye Copdock Akenham Pinford End Haughley Green Audley End Herringswell Bardwell Southolt Town Street Mill Green Easton Stoke Park Westley Rougham Stanningfield Wetherden Great Cornard Euston Chapel Hill Hazel Stub Freston Sicklesmere Bloodman's Corner Hanchett End Bedfield Lower Green Mill Green Cox Common Waldringfield Duck Corner Lavenham Castle Hill Duke Street Lower Raydon Willisham Worlingworth Wortham Ling Dallinghoo Barking Tye Redisham Magpie Green Elmswell Wilde Street Base Green Great Ashfield Upper Layham Farnham Earl's Green East Green Ramsholt Little Green Hestley Green Stanway Green Monks Eleigh Fornham St Genevieve St James South Elmham Lambfair Green Colton North Green Coldfair Green Worlington Bacton Ford's Green Mill Common Grimstone End Clements Trimley St Mary Blaxhall Honington Broad Street Water Run Onehouse Thorndon Metfield Common Flixton Sotterley Bacon's Green Bell's Corner Sizewell Martlesham Dennington Stutton Creeting Hills California Broadgrass Green Gosling Green Culfordheath Workhouse Green Frostenden Woodbridge Walk Bildeston Buxhall Fen Street Daisy Green Hoo Thorpe Green Smithwood Green Leiston Leavenheath Gedgrave Hall Stowlangtoft Foals Green Great Common Button's Green Alpheton Brent Eleigh Curlew Green Kentford Brightwell Heath Brundon Kersey Metfield Flixton Aldeburgh Wickham Street Westerfield Rose Hill Hadleigh Heath Mettingham Ashfield Green Broom's Barn Little Whittingham Green Cock & End Babel Green Sudbury Sutton Street Lady's Green Yoxford Wenhaston Friday Street Mickfield Troston Oldhall Green Ash Street Pettaugh Great Barton Cattawade Withersdale Street Little Wenham Dandy Corner Hasketon Botesdale Green Thurston Barsham Walpole Ampton Old Felixstowe Melton Stowupland Lower Falkenham Bucklesham Huntingfield East End Honey Tye Redgrave Pakenham Denham Street Great Green Rendham Hanningfields Green Botesdale Coddenham Brook Green Groton Sharpstone Street Hacheston Horringer Mellis Green Dennington Corner Earl Stonham Chedburgh Sowley Green Upper Holton Brampton Little London Stonecross Green Cross Green Wortham Drinkstone Brandeston Hitcham Whepstead Ellough Shelland West Street Burstallhill Ash Corner Brettenham Stoke Ash Larks' Hill Tan Office Tan Office Green Coddenham Green Wissington Orford Chilton Street Wickham Market Butley Low Corner Purple Hill Aldringham South Cove Bradfield Combust Cavenham Thurston End Fornham All Saints Gosland Green Swan Green Debach Stanton Street Fen Street Hoxne Brome Street Stradbroke Grundisburgh Stoke Wrentham West End Syleham Newthorpe Belstead Athelington Brabling Green Mendham Market Weston Acton Flowton Methersgate Hartest Hill Wherstead Windsor Green Langham Sapiston Collipy's Green Cuckold's Green Somersham Burstall Bramfield Holton St Mary Little Glemham Hog's Corner Weston Ditch Great Bricett Buxhall Thrandeston Dagworth Tuddenham St Martin Haughley Occold St Cross South Elmham Gipping Brockford Green Ringshall Ringsfield Wyverstone Street Blackthorpe Great Livermere Cross Green Nedging Monewden Lindsey Tye Needham Street Barton Mills Easton Bavents Wingfield Green Upsher Green Chalkstone Little Welnetham Fen Street Parham Studlands Park Barnby Rushmere Street Chilton Leys The Downs Bacton Green Crownland Clay Common Ubbeston Stoke-by-Nayland Spratt's Street Cuckoo Tye Little Stonham Wickhambrook Washmere Green Dunstall Green Butley Stone Street Lower Layham Brockley Corner Holywell Row Wickham Street Kenton Benhall Green Birds End Denham Green Smallwood Green Rushmere Cavendish Creeting St Mary Whelp Street Sackers Green Oakley Gedgrave Boxted Stanstead Thorns Depden Green Spexhall Mill Green Beck Row Badwell Ash Bawdsey Rose Green Brown Street Broad Green Newbourne Wick's Green Battisford Tye Great Thurlow Tannington Place Cookley Green Yaxley Cay Hill Little Saxham Little Bealings Fenstead End Stuston Willisham Tye Monk Soham Green Kettlebaston Four Ashes Clopton Green Forward Green Cransford Shotley Kingshall Green Humble Green Wicker Street Green Ringsfield Corner Bedfield Long Green Lindsey Undley Bush Green Needham Market Farley Green Blackheath Kersey Upland Kenton Corner Woolpit Tunstall Frostenden Corner Felixstowe Gisleham Knettishall Mellis Broke Hall Holton Cross Street Knaves Green Harleston Ingham Cockfield Horham Boxford Beyton Risby Westhall Weybread Street Thorney Green The City Hunston Green High Street Green Ringshall Stocks West Stow Hintlesham Stowmarket Rattlesden Gosbeck Badingham Chimney Street California Pea Porridge Green Nacton Thorington Street High Street Scotland Street Ilketshall St Margaret Pixey Green Stone Common Cobblers Corner Woodbridge Hartest Letheringham Bures Green Chillesford Linstead Green Nether Street Cherrytree Green Bird Street Middleton Saxham Street Little Wratting Ixworth Thorpe Bromeswell Conyer's Green Eastbridge Little Thurlow Green The Heath Weybread Bungay Capon's Green Thorpe Street Cook's Green Brandon Nowton Boyton Camps Heath Boulge Kettleburgh Park Gate Chediston Green Great Bradley Cole's Green Walton The Port of Felixstowe Pettistree Covehithe Bradfield St Clare High Rougham Denham Stoven Church End Newman's Green Creeting Bottoms Assington Mildenhall Long Melford Bell's Cross Shimpling Street Burthorpe Toad Row Bobby Hill Upper Town Chilton Old Newton Cratfield Oulton Mill Street Creeting St Peter Boyton End Gunton Little Waldingfield Haughley New Street The Woodlands Hawkedon Hanchett Village Bicker's Heath Kirkley Bruisyard Nettlestead Waldringfield Heath Wales End Linstead Parva Upthorpe Hanningfield Green Ward Green High Street Upper Street Newmarket Carlton Cowlinge West End Allwood Green Beyton Green Rumburgh Elmsett Lattinford Hill Normanston Little Blakenham Lower Street Kenny Hill Woodside View Middlewood Green Westbourne St Peter South Elmham Easton Green Hopton Hemingstone Mace Green Denham Corner Thelnetham Button Haugh Green Maypole Green Wickham Skeith Crowfield Poystreet Green Cattishall Blythburgh Washbrook Hollesley Higham Priory Heath Barningham Ufford Sibton Playford Denham End William's Green Cow Green Priory Green Chantry Washbrook Street Wattisham Baxter's Green Temple End North Green Mickley Green Church Common Poslingford Hawstead Green Haverhill Mutford Stoke-by-Clare Aspall Exning Walsham le Willows Little London Barham Lampardbrook Kedington Dunwich Stackyard Green Laxfield Bentley Brundish Street Milden Woolpit Green Potash Lower Holbrook Otley Bottom Burgate St Nicholas South Elmham Timworth Green Chimswell Lowestoft Kirton Chelsworth East Bergholt Chediston Sutton Common Tannington Cuckoo Green Ballingdon Whitestreet Green Norton Little Green Heveningham Bruisyard Street Felsham Canham's Green Pitmans Corner Wetheringsett Henstead Oulton Broad Thornham Parva Kittle's Corner Whitton Shimpling Glemsford Broad Green Wickham Green Butley High Corner Saxmundham Rooksey Green Debenham Melon Green All Saints' South Elmham Parkway Hillside Ringsfield Common Lidgate Nedging Tye Ixworth Russel's Green Roman Hill Somerleyton Cretingham Naughton Silverley's Green Grinstead Hill Chickering Polstead Blyford Southwold Bower House Tye Tattingstone Hoggard's Green Brundish Lawshall Green Holbrook Drinkstone Green Thwaite Reydon Bucks Horn Place Capel St Andrew Little Thurlow Fakenham Magna Halesworth Cock Street Annesons Corner Crowfield Green Hargrave Polstead Heath Horner's Green Little Bradley Shotley Gate Wootten Green Stratford St Andrew Walberswick Meeting Green Brome Barnham Tattingstone White Horse Boot Street Apsey Green Stansfield Shadingfield Saxtead Bottom Little Eriswell Framsden Boyden End Sproughton Shottisham Cove Bottom Earsham Street Hemley Sudbourne East End Somerton Saxtead Little Green Lower Common Bromswell Heath Ousden North Warren Hepworth Shelley Cotton Barnardiston Battisford Lakenheath Kelsale Greenwich Hunston Winston North Cove Monk Soham Kingshall Street Harrow Green Badwell Green Clopton Corner Cranley Kessingland Maidensgrave Drybridge Hill Wetherden Upper Town Cookley Willingham Oak Hill Helmingham Upper Weybread Hadleigh Silverlace Green Shop Corner Colchester Green Tuddenham Racecourse Gislingham Attleton Green Acton Place Freckenham Depden Dorking Tye Wattisham Stone Stockhold Green Thorpeness Kersey Tye Hundon Sotherton Hightown Green Heckfield Green Thorington Middleton Moor Wattisfield Withermarsh Green Palgrave Wixoe Wyverstone Green Cocks Green St Michael South Elmham Oakley Park Combs Ford Great Blakenham Charles Tye Winston Green Trimley Lower Street Semer Barnaby Green Monks Eleigh Tye Barley Green Bedingfield Street Wentford Denham Landwade Candle Street Gainsborough Chelmondiston Clopton St Margaret South Elmham Owl's Green Burgh Stanton Chare Bramford Stubbing's Green Lackford Cornard Tye Rougham Green Warren Heath Little Green Herringfleet Dalham Dorley's Corner Mill Green Westhorpe Red Lodge Hagmore Green Lound Thorpe Morieux Hulver Street Calford Green Cross Green Charsfield Pakefield Wainford Preston St Mary Shipmeadow Dublin Higham Blacksmith's Corner Battlies Green Chelsworth Common Ashbocking Gazeley Frizzeler's Green Little Knowles Green Fressingfield Thistley Green Rendlesham Gipsy Row Witnesham Gulling Green Long Thurlow Eyke Stores Corner Parliament Heath Little Finborough Crown Corner Shingle Street Wenhaston Black Heath Brantham Great Bealings Coltsfoot Green Woolverstone Henley Denston Clopton Green