Company Voluntary Arrangement Farley Green in Farley Green

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