Business Advice
Saving Your Business through Company Voluntary Agreement
Financially troubled companies that are having huge financial problems and legal threats from its creditors can file for bankruptcy. But if they believe that their company is still worth saving and only need some time to pay off its debts, business owners or the company directors can devise a Company Voluntary Agreement or CVA. They can continue to do business and at the same time still be able to pay off its creditors.
If the company wants to go into a Company Voluntary Agreement it must get the services of a licensed insolvency practitioner (IP) to help them with the process. It should be noted that only licensed insolvency practitioners are allowed by law to resolve insolvency issues of a troubled business. The licensed IP will make a proposal on behalf of the troubled company. The creditors can negotiate with the company through the proposal made. Through the CVA, both parties may agree for a smaller amount owed, to be paid over an agreed period.