Voluntary Arrangements › Company Voluntary Arrangement (CVA)/Partnership Voluntary Arrangement (PVA)
It is not just the consumer who can experience debt problems. Running a business, whether as a sole trader, Partnership, Limited Liability Partnership or Limited Company, brings with it a number of unavoidable overheads, such as PAYE, VAT, Tax, rent etc, all of which can take their toll on the cash flow of the business.
A sudden change in circumstances can render a viable business with debt problems it cannot immediately resolve putting the survival of the business in jeopardy. In certain cases a VA can help to alleviate a business's immediate debt problems, which enables the business to continue trading and survive.
Carrick Read Insolvency will assist with assessing your business's financial position free of charge. If a VA is feasible one of our licensed insolvency practitioners will help in preparing a VA proposal and if appropriate an application can be made to the Court for protection from creditors whilst the VA is set up.
We will then send the proposal to all the creditors of the business, who will vote to either accept or reject the proposals. If sufficient creditors vote to accept it (at least 75% of those who vote is required), then the VA is approved and will be legally binding for all the business' creditors, including any who may have rejected the proposal or not voted at all.
Once the VA is approved and set up, none of the creditors bound by it will be able to contact the business directly about the debts. Instead they must lodge a claim with the insolvency practitioner supervising the VA.
If you wish to make further enquiries about the possibility of your business proposing a VA to its creditors then please telephone either Jonathan Lupton or Christopher Garwood immediately on 01482 211160 who will be more than happy to speak to you and/or arrange a free consultation.
