Ways to solve business debt

In this section you will find ways to solve business debts Alternatively, you can call the number below for professional advice or you can click our...contact form.

There are several ways, both formal and informal, that are used to solve business debt problems. The following explanations are intended to help you choose a solution that best suits your situation. These solutions will require professional help. You should contact myiva-adviser.com for their Professional advice.

Company Voluntary Arrangement (CVA).
Debt Guide: Debt solution for limited companies.

The CVA is the procedure in company law which corresponds closely to the individual voluntary arrangement in personal insolvency law. In simple terms a CVA is a deal between a company and its creditors. A feature of the voluntary arrangement is that the company requests extra time to pay its debts and often also asks its creditors to write off a proportion of its debts. The deal may be accepted because creditors take the view that they are likely to receive more in a voluntary arrangement than if the company were forced into liquidation. Furthermore, trade creditors may expect that they will derive profit from future dealings with the company, dealings which would not be possible if the company were to cease trading. Although the voluntary arrangement is administered by an insolvency practitioner known as a supervisor, it cannot be over-emphasised that the deal is between the company and its creditors. Furthermore, and most importantly, the company remains in the day to day management of its directors.

A CVA cannot be forced upon the company's creditors; it has to be agreed by 75% by value of the creditors who vote at a meeting specially convened to consider the voluntary arrangement proposal. Creditors are likely to vote in favor of a CVA so long as they can see a reasonable return on the amount due from the company. This in turn requires:

  • Satisfactory management
  • Adequate funding so that the company can pay its ongoing expenses as they fall due.
The benefits of a CVA to the directors of a company are that they....
  • Avoid bankruptcy or company liquidation.
  • Regain control and continue trading.
  • Wipe up to 75% off your unsecured debt.
  • GUARANTEED DEBT FREE in 60 months.
  • One easily affordable monthly payment.
  • All interest FROZEN and charges STOPPED.

Creditors will want to establish in their mind how the company is going to make profits in the future when it has run into financial difficulties in the past. A CVA is therefore particularly appropriate when the company's difficulties arise out of a number of specific but isolated events which are not expected to arise in the future. Such events may be a particularly unprofitable contract, or a significant bad debt, or an under-insured interruption such as fire or flood. If creditors are to support a company voluntary arrangement then they will wish to be satisfied that there is profitable underlying and continuing business and that management is capable of carrying forward the business..... Learn more.

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Creditor Voluntary Liquidations (CVL).
Debt Guide: Solution for limited companies.
A company is an artificial legal entity. It cannot live and it cannot die. Its effective birth is registration and its effective death is dissolution. Liquidation is simply the process by which a company's assets are realised and distributed to those parties legally entitled to them, so that it can be dissolved. A Voluntary Liquidation is one which has been instigated by the passing of a resolution by the shareholders, as opposed to a winding up order made by the court, generally at the behest of an unpaid creditor. A Creditors Voluntary Liquidation is a voluntary liquidation where the directors cannot make the Statutory Declaration of Solvency necessary for a Member's Voluntary Liquidation i.e. It is insolvent, in that it will be unable to pay its debts in full.

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Debt consolidation is the process in which debt is restructured into one low affordable amount which you agree to pay.

If you want honest, free advice on how to get out of debt without a debt consolidation loan then contact us now.