Contracts had not been costed properly and the accounting system was non existent. The company was leaking money and when we scratched the surface it was clear that large debts had built up.
CVA’s
Mr P Scott, Lincoln
"I had never even heard of a CVA but it was the perfect solution and has given the business a second chance."
To enter a Company Voluntary Arrangement (CVA) a company must be considered insolvent or already be in liquidation. If it is clear that the business could survive if debt repayments were reduced then a CVA could be the way forward.
It is a legal arrangement between the company and its creditors and must be arranged and supervised by a Licensed Insolvency Practitioner.
It is our job to negotiate with your creditors, to explain the situation to them and assure them that the arrangement is the best way forward for everyone. For creditors a CVA is often a better option than liquidation and as such they are usually open to our proposal and happy to write off a proportion of the debt if the arrangement is maintained.
In most CVA’s, over 50% of the debt is written off and interest and charges frozen.
This can seem too good to be true but amazingly CVA’s have been largely overlooked and most companies are not even aware that they exist. A CVA could save your business and at the Insolvency Practice we can offer free advice and can confirm if your company may be eligible. We can also explain how a CVA will be received by your bank, suppliers and employees.
Key Features:
- A CVA can cut costs and improve cash flow quickly
- Rental agreements and employment contracts can be terminated at little or no cost.
- A CVA can be agreed with the Inland Revenue if realistic well planned. Over 95% of our CVA’s are approved.
- A CVA usually last 5 years and on average creditors receive 35% of their money back.
Do you qualify for a CVA? Try our free...
If you are being threatened by creditors and have outstanding bills, you need to take immediate action. If the problem is not addressed quickly it may be too late to save your business and you could become personally liable for the debts. At The Insolvency Practice we can ensure you remain protected and show you the best way to clear your business debt.
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