A CVA is similar to an IVA but for business debts and is a legally binding agreement with your company's creditors. It allows a Company to reduce monthly commitments and improve cash flow so long as there is a clear defined goal and amended business plan which is viable.
In order to enter into a CVA the company must be Insolvent and the deal between the insolvent company and its creditors allows the company to repay some, or all, of its historic debts out of future profits.
A CVA is administered by an Insolvency Practitioner and Directors stay in control of the company with the support of the IP. It can stop legal actions such as a winding up petition.
A CVA was introduced as a part of The Insolvency Act 1986 and recent government legislation was designed to encourage more companies to use this approach.
We provide a very personal service so you are confident you are receiving the best possible help. Our in house Insolvency Practitioner is on hand to answer any queries you may have. If you would like further advice on CVAs or other business or personal debt solutions please call us free of charge on 0800 043 2424 or contact us here.
Are you a director of a company in financial trouble?Speak directly with an Insolvency Practitioner now on 0800 043 2424.