Company Voluntary Arrangement
A CVA, or Company Voluntary Arrangement, is the corporate equivalent of an IVA (Individual Voluntary Arrangement), and both represent a commitment to clearing what you can from the debts that you owe.
Taking out a CVA also represents a desire to continue trading and, with the support of your creditors, to recover your business to a more stable financial footing.
Crawfords Insolvency can prepare the necessary documentation and submit your CVA proposal to your creditors for approval.
Once in place, this agreement allows you to continue trading, with a view to clearing some of your debts over a specified period.
The amount you owe is frozen at the point the arrangement is made, and creditors are given clear expectations of how you will repay them, and when.
Monthly payments are typically made out of your trading profits and, at the conclusion of the arrangement, no debts are considered to remain outstanding.
A CVA, therefore, represents full and final settlement of what you owe.
With the arrangement in place, you can focus on running your business in a profitable way, without having to continually fend off your creditors.
In terms of time span, a CVA usually lasts for five years, but can be made much shorter if it is possible to clear a lump sum of your debts, potentially through the refinancing of assets.