CVA or a Company Voluntary Arrangement Advice
CVA's are frequently taken by directors who feel their company has a viable future and are prepared to work hard to keep it alive.
Under such an arrangement you will keep control of your company and continue to trade as normal. All your company's unsecured creditors (trade and revenue) would be contacted by us and an agreement made between you and them.
The arrangement would ensure that the amounts owed to the company's current unsecured creditors were frozen, thereby allowing the director to concentrate on moving the company forward.
The proposal would be to repay either all or part of the company's debts over a period of time from the trading profits. These monthly payments would be in full and final settlement of all monies due to your creditors.
Creditors usually receive between 25 per cent and 100 per cent of monies owed to them. This is dependent upon what the company can afford to repay.
Once the arrangement has been approved, affordable monthly contributions will be paid from the future profits of your business. This is a legally binding agreement and usually lasts for five years.
Alternatively a lump sum contribution or re-financing of assets could be offered and the duration of the CVA would consequently be shorter.