Formal Insolvency Services
Protect your business from going under
Individual and Company Voluntary Arrangements can provide a suitable vehicle to save a viable business and maximise the return to creditors. If your business is in debt and you want to save your business. There are various approaches including the payment of affordable contributions from the business to enable dividend payments to creditors over a set period and in suitable cases to allow time for a restructuring or sale of the business.
For further information please contact us on 0800 072 1544 or fill out the contact form.
There are pros and cons to voluntary arrangements see below for further information.
Company Voluntary Arrangement
Pros
- Protection for an otherwise future profitable business
- Allows restructuring of a business
- Moratorium protection whilst formulating creditor proposals
- Less costly than administration
- No requirement to advertise appointment
- Directors retain day to day control
- No investigation of directors' conduct
Cons
- Impact on credit rating
- Creditors may impose restrictions
- At risk of unrealistic expectations
Individual Voluntary Arrangements
Pros
- Protects a profitable business
- Interim Order can prevent action pending approval
- Backed by a creditor approved proposal
- Sole Trader/Partners remain in control of business
- Property may be excluded
- Less costly/better return than bankruptcy
- Creditors can recover VAT/tax re written off debt
- No detailed investigation of events leading to insolvency
Cons
- Longer contribution period (5 years versus 3 years bankruptcy)
- Creditor modifications may present difficulty
- Credit rating of debtor(s) and business will be affected
- Breach of conditions can still lead to bankruptcy
- Inheritances or windfalls go to creditors during IVA