Understanding Company Voluntary Arrangements (CVA’s)
A Company Voluntary Arrangement is a way of a limited company paying back debt over time, this can even be at a reduced level of debt (i.e. your creditors agree to accept only 30% of your debt paid back over the next 5 years).
The amount your pay every month (your contribution) should be affordable and allow you to continue to run the business.
A CVA is right for you if:
- You are making some profit in your business (forgetting the debts)
- Your assets are worth less than your debts
- Your brand is recognizable
- You want to continue trading
There are many other reasons where a CVA may be better for you that other solutions, but we can advise you of those when you call.