Company voluntary arrangements (CVAs)
There is legislation that enables a company to make a private arrangement with all its
unsecured creditors. The CVA procedure was introduced by the Insolvency Act 1986
"IA86" and is simply a formal mechanism which permits a company, which has debt
problems, to reach a compromise with its creditors on the repayment of its debt.
Imagine if your company could
• Freeze the company's debt and any interest charges
• Repay the debt in affordable monthly instalments
• Prevent creditors from taking further action against your company
• Write off a proportion of the company's debts with creditors' consent
The CVA can be tailored to suit the company's and creditors' needs. It could involve a
five year payment plan or a full and final settlement in the form of a lump sum to
creditors or a combination of the two.
The CVA avoids the need for liquidation, can save jobs and investments. A further
advantage is that the Supervisor is not required to investigate the directors' conduct
nor submit reports to the Dti as in liquidation. However, if the directors' conduct has
been severely lacking, the Supervisor will need to advise creditors of this and this
could effect creditors desire to support the CVA.
To find the best solution for you Contact Simply Debt Solutions or Send Your Details to
The Debt Advisor today.
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