Company IVA
If you are looking for the best company for advice on how to get an IVA, you should look no further than IVA.info. We are IVA specialists, helping people learn about the IVA debt solution and how it could help them to become debt free.
IVAs are designed to help individuals deal with their personal unsecured debt problems and they can do this by putting in place a new agreement with their creditors that allows repayments to their debts to be based on affordability rather than creditors' expectations.
They are only available for individuals living in England, Wales and Northern Ireland and the individual must have debts above £10,000 owed to more than one creditor in order to qualify.
An IVA For A Company
When it comes to Limited Company debt problems the IVA solution is unable to help.
But, fortunately, there is an equivalent debt solution, specifically designed to help Limited Companies deal with their unsecured debts, just as an IVA helps individuals.
It's called a Company Voluntary Arrangement or CVA.
CVAs provide the same level of legal protection for a Limited Company as an IVA does for an individual, whilst giving the opportunity to the Limited Company to try and trade out of its debt problem.
Formal debt solution
Just like an IVA, a CVA is based on a legally binding agreement that must be voluntarily agreed by all parties. Once accepted by the required majority of creditors, the CVA becomes legally binding on all creditors whether they voted to accept it or not.
The CVA continues for a fixed term of, normally, 5 years after which the CVA completes. Any unsecured company debts left unpaid at the successful conclusion of the CVA are then legally written-off.
Because it is a legally binding agreement a CVA can only be administered by a licensed Insolvency Practitioner.
Directors' decision
The decision as to whether a CVA should be applied for rests solely with the Limited Company's Directors.
Under their legal responsibilities, company directors need to explore all avenues available to them when their company is facing insolvency.
They have a duty under Company Director's Law that obligates them to seek a structured resolution if their Company becomes insolvent. The CVA debt solution acts as a legal alternative to a voluntary liquidation.
Determining whether entering a CVA is the right decision can be extremely difficult and professional advice should be sought before any action is taken.
Professional Advice
If you would like more information relating to the CVA debt solution, please call 0800 088 7502.
Alternatively, you could complete this form and one of our advisers will contact you at your preferred time.
