Reviewed 8th December 2023
A Company Voluntary Arrangement is a formal agreement that restructures your company’s debt, whilst enabling you to continue trading. Unsecured debts can be included, such as those owed to suppliers, trade creditors, and utility companies.
A CVA may be an option if your company is experiencing temporary financial problems, is expected to recover in time, and can support the monthly payments. If approved, the arrangement becomes legally binding for all parties as long as your company maintains the new repayment schedule for the duration.
Company Voluntary Arrangements typically last for 3-5 years. The arrangement details the amount of debt that will be written off at the end, and once it’s in place, all interest and charges are frozen.
A licensed insolvency practitioner (IP) is appointed to analyse the company’s financial position and put forward a proposal to creditors. They then vote on the CVA, and 75% (by value of debt) need to be in favour before it’s approved.
We can assess whether your company is eligible for a CVA, and formally negotiate with creditors to reduce the monthly payments on your debt. If a Company Voluntary Arrangement isn’t appropriate we’ll provide reliable advice on the best way forward.
So what are the main eligibility criteria for a CVA?
The company must be insolvent to be eligible for a Company Voluntary Arrangement, and a licensed IP must believe it’s viable for the future. This means the business must be able to support the new debt repayments whilst continuing to meet ongoing liabilities such as tax, National Insurance, and operational costs.
Our team can explain the benefits of entering into a CVA with your creditors, as well as describing any potential downsides that might arise during the course of the arrangement.
So what are the main advantages and disadvantages of a CVA?
Our team has extensive experience of helping limited companies industry-wide to deal with debt, and regain their position in the market. We’ll offer reliable independent advice on your situation, and negotiate with creditors on your behalf.
If a CVA isn’t appropriate we can also provide trustworthy guidance on any alternative options. Scotland Debt Solutions operates from a network of offices around Scotland, and can offer you a free same-day consultation with one of our partner-led team.
Our debt report is completely easy to use and is a great starting point for anyone with over £5000 of debts looking to take control of their debt issues. By providing us with details of your incomings and outgoings we can suggest the most appropriate way forward for you.
Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.
Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.
Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.
Our Other Services
Administration is an insolvency process that provides breathing space for companies struggling with debt, giving them the time needed to establish a plan going forwards. With several options potentially available at the end of administration, it’s an effective step for many businesses.Find out More
Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRCBusiness Debts
When a limited company becomes insolvent, it’s important for directors to place the interests of creditors first and do all they can to minimise further losses. Creditors’ Voluntary Liquidation (CVL) is an insolvency process that allows this to happen, and ensures directors comply with strict insolvency laws.Find out More
Members’ Voluntary Liquidation (MVL) allows you to close your business and extract the profits in a tax-efficient way. It’s a process that’s available to solvent limited companies, and requires you to make an official Declaration of Solvency prior to commencement.Find out More
A director’s loan account (DLA) can become overdrawn if too much money is taken from the company that isn’t salary or a dividend. Directors’ Loan Accounts are useful when operated with caution, but can be a cause of concern if the company becomes insolvent.Find out More
An insolvency practitioner is a licensed insolvency professional who is qualified to give advice and administer the full range of formal insolvency options.Find out More
A Winding-up Petition is a legal notice presented to the court by a creditor with a view to forcing a company into liquidation. If a winding-up order is granted by the court, compulsory liquidation can take place very quickly, and this signals the end of the company.Find out More
We'll give you a call
Our Scottish based team can help advise you on your debt problems.
Meet our qualified Scottish based team
100% Confidential advice
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.
Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.