Company Voluntary Arrangement Levington in Levington

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