Company Voluntary Arrangement Holton St Mary in Holton St Mary

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