Individual Voluntary Arrangements (IVAs) have become increasingly popular with 59,200 taken out last year alone. They are particularly attractive to sole traders looking to avoid bankruptcy and carry on trading. A Company Voluntary Arrangement (CVA) works in exactly the same way for limited companies and allows an Insolvency Practitioner to negotiate with creditors in order to write off much (usually over 50%) of your company’s debt.

A Company Voluntary Arrangement (CVA) creates an affordable payment plan and as a legally binding agreement it protects your company from further action. Existing contracts (particularly leasehold agreements) can often be renegotiated with creditors who are willing to compromise in order to avoid the much lower return liquidation usually brings – this helps to maintain good relations with suppliers and allows the company to trade as normal.

Over the last few years this incredible piece of legislation has finally been recognised and companies such as Toys R Us and New Look have used them effectively to restructure and save the business. Although many large retail companies are now taking advantage of CVAs small businesses could also qualify and write off significant amounts of debt.

If your company is struggling (we can also arrange IVAs for sole traders and discuss administration or a pre pack sale) and needs to restructure its debt then a CVA could be the solution – why not try our free 60 second test and see if you qualify or call us on +44 77 1566 4532 for some free advice!