Will a Company Voluntary Arrangement Help You?

A company voluntary arrangement can help you to move forward, and discover that there are alternatives rather than bankruptcy.  This procedure allows companies that are struggling to reach a legally binding agreement, which will benefit all parties. Over time, all of your debts will be paid, and there will be no further action needed.

There are several different situations where this form or arrangement can be beneficial, and any administrators, liquidators or directors can propose a company voluntary arrangement.  Creditors cannot propose this idea, and they must wait for the company to make the decision. It is never an easy decision to make; however, it can be the only solution to your problems.

You will need to submit an application to the courts, which will outline your proposal, and the way forward that you intend to take. Whilst this process is happening, creditors cannot take legal action against your business for 28 days. This is often a relief, and will remove the pressure that the situation is likely to bring.

Once you have decided that a company voluntary arrangement is the way forward, you will begin to realise that there are several benefits. It will allow you to avoid liquidation which can have significant consequences in the future. Many companies go through a bad patch, and this arrangement is ideal if you believe that your business is profitable, but just needs time.

Some people choose this option when they want to restructure their business, and remove the pressure that creditors can bring. You need to understand that this method is not a quick solution, and you need to ensure that you can perform the commitment you are agreeing to abide to with the creditors. There is no point in agreeing to pay the debt over a period of time if you have no intention of doing so in the future.

You will need to be honest about every aspect of your company’s financial situation, and ensure that it is viable in the future.  Every aspect of your finances will be scrutinised, which is why you need to ensure that you have been honest. You will need to continue trading, and be able to afford the day to day running of the business, as well as pay back the debt.

This style of arrangement has been used for many years, and a vast number of different businesses and creditors have benefited from using the arrangement. You are given the time that you need to regain your confidence, and turn your business around to ensure that you begin to make money. There are an immense number of top quality businesses that may need this opportunity to thrive in the future.

A company voluntary arrangement can be time consuming to set up, and you need to take the time and effort to ensure that everything is precise. All of the details must be considered carefully, and agreed by both parties. You will need to use the services of a dedicated professional team who can ensure that every aspect is legal.

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