Company Voluntary Arrangements (CVA) are legally binding agreements between an insolvent company and its creditors, allowing company directors to remain in full control and continue trading.
It’s a flexible arrangement that involves making monthly payments from profits or an asset to pay back creditors a proportion of its debts over time. Following a successful CVA, creditors are paid significantly less than the full lump sum payment owed (with the outstanding debt waived).
A CVA is approved when 75% of the creditors (by value of debt) vote in the proposal’s favour. Moving forward, as long as the contributions are met fully, the creditors are bound by the agreement and it must be left alone.
CVAs have their benefits, but before entering them it’s important to verify that your company is indeed eligible and/or suitable for the procedure.
If you feel a CVA is the right route for you and need an expert opinion on drafting a professional proposal and presenting it to creditors, get in touch with TS Partners. We can put you in touch with industry experts who can guide you through the whole process.
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Once the basic setup was sorted I was allocated Emma, who was available then to guide me should I have any queries! Thorough training on Quickbooks and always available (within office hours) to sort my mess up or any queries no matter how mad they seemed! Always willing to help and no task to small! Thoroughly recommend Emma to anyone looking to use TS Partners as their accountants!
5 months in and still running smoothly! With no grey hairs in sight! (YET!)
Thanks to Emma, Matt and the team at Tax Shop, Wellington
Recommend to anyone in business for great down to earth advice at a sensible price.