Simply.Law’s member lawyers can provide you with trusted and authoritative insolvency legal advice to help you best manage both your debts and your relationships with your creditors.

Furthermore, Simply.Law provides an intelligent platform for you to compare and analyse its reviewed and accredited specialists. This enables you to choose the solicitor who is best positioned to help you pursue your objectives, whether it is through a company voluntary arrangement or some other insolvency-related course of action.

What is a company voluntary arrangement?

A company voluntary arrangement (CVA), introduced by the Insolvency Act 1986, is an arrangement reached between a company and its creditors to provide solutions for difficult financial problems. It typically involves the restructuring and/or reduction of debts over a fixed period of time.

CVAs are carried out under the supervision of registered insolvency practitioners and are designed to help companies from going into liquidation but can also be used alongside this process.

CVAs are a good option for businesses because they allow them to continue trading while also making provision for the best interests of creditors.

The provisions of a CVA apply to all unsecured creditors of a company but do not alter the rights of secured and preferential creditors unless they agree otherwise.

Protection for smaller companies

Under the Insolvency Act 2000 smaller companies applying for insolvency have 28 days “moratorium” protection from action by creditors while they are considering the proposals of a CVA . However, in order to be eligible for this moratorium, companies must meet two of the following criteria:

• Have fewer than 50 employees
• Have a turnover of less than £5.6 million
• Have a balance sheet total of less than 2.8 million

Insolvency legal advice with Simply.Law

Simply.Law’s member solicitors include many who specialise in giving insolvency legal advice. To bring clarity and confidence to the process of company voluntary arrangement, talk with us today.

There are many ways to get in touch. Try our Match Service, browse our member profiles, speak with an advisor or arrange to consult a solicitor, free, for thirty minutes.