Ringfences All Your Unsecured Debts
Can Stop Serious Creditor Action
Eases Cashflow Difficulties
Allows You To Keep On Trading
Company Voluntary Arrangements Stop Serious Creditor Action
A Company Voluntary Arrangement, also known as a CVA, is a formal insolvency procedure used to assist companies to carry on trading when in financial difficulties. If your company owes creditors, including HMRC more than £20,000 and the cash flow of your company is so poor that you can not pay those creditors immediately or in the near future, then as long as there is potential for continued sales at a profit, your company may be suited to propose a Company Voluntary Arrangement.
Allows You To Keep On Trading
A CVA allows you to repay a fixed amount in monthly instalments, once the end of the term is reached any outstanding debt is automatically written off. A CVA works well when there is a winding up petition because a CVA repayment plan is usually the best deal that a creditor could get, as a liquidation may result in a lower return.
A Company Voluntary Arrangement is a legally binding financial agreement made between the company and its creditors. A Company Voluntary Arrangement can ease company cash flow problems by reducing company debt and extending the repayment period.
Company Voluntary Arrangements
Frequently Asked Questions
What Are TaxGone Charges To Assist In Putting A Company Voluntary Arrangement In Place
TaxGone do not charge for their services in preparation of Company Voluntary Arrangements. Silke & Co, (part of the same group of companies as Tax Office DM Limited T/A TaxGone), do charge a nominee’s fee for assisting in preparing CVA proposals, and do charge fees for acting as supervisor if appointed upon approval of a CVA. All fees charged for acting as supervisor come from contributions paid into the Company Voluntary Arrangement.
Amount of Unsecured Debt Required To Put A Company Voluntary Arrangement In Place
£20,000 and upwards.
Who Can I include In a CVA - Company Voluntary Arrangement?
In general all unsecured creditors at the date of the CVA meeting. That includes all HMRC debt, trade creditors and shortfalls to H.P. and Leasing creditors (if the goods are to be returned), rates, unsecured loans, unsecured banking debts and any required redundancies.
Will a CVA – Company Voluntary Arrangement stop a Winding up Petition?
Yes. Existing unsecured creditors are legally stopped from continuing enforcement action once a Company Voluntary Arrangement is approved.
Book A Meeting With TaxGone
We will send a consultant out to meet with you with no obligation or charge or you are free to visit us at our head office in Doncaster. Call today and book an appointment.
A winding up petition has to be advertised in the Gazette, which can often lead to your bank account getting frozen. Banks have a system in place to spot petitions, and when they become aware that one of their customers is subject to a winding up petition ordinarily the relevent financial institution with which the company banks will freeze the company's bank accounts.
This can significantly adversely impact upon a company's ability to pay its creditors as and when the same fall due. We can assist the company in making an application for a validation order, an order of the Court authorising a company subject to a petition to pay specified creditors, so as to keep trading pending finding a solution to dispose of any winding up petition including payment of the petition debt.
TaxGone can assist in attempting to prevent this by assisting the company in applying to Court for a validation order, for specified payments to be made from the frozen bank account.
The bank should reopen the company bank account once they have received written evidence that a Winding up Petition has been dismissed.
TaxGone can also assist with instructing a Barrister or solicitor to seek an adjournment of the Winding up Petition whilst a Company Voluntary Arrangement is prepared and/or after options are explored.