A Company Voluntary Arrangement “CVA ” is for viable businesses who are suffering with the burden of debt.
What is a CVA?
A CVA is a legally binding agreement which is agreed with your creditors and typically lasts for five years.
The company will be expected to contribute an agreed amount, which can be weekly, monthly or quarterly. This is based on information provided by you in relation to historic performance and takes into account projected income and trading expenses.
Your insolvency practitioner will prepare a legally binding document called a proposal and call a meeting of creditors to allow your creditors to decide if they will accept your proposal. It is normal for the Insolvency Practitioner to consult with the company’s major creditors prior to a proposal being issued to ensure its success.
Once a CVA is approved, all creditor action will ceases including bailiffs, winding up petitions, for any pre-existing debts. All interest and charges are frozen and any remaining debt at the end of your proposal will be written off.
Call Abbey Taylor now and speak to one of our qualified team for further information and options.