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