Voluntary Insolvency: Arrangements for Companies & CVAs
Voluntary Insolvency Arrangements for Companies
For Voluntary Arrangements (insolvency procedures you decide to commence voluntarily), directors can:
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contact all creditors to see if you can reach an informal agreement
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enter into a Company Voluntary Arrangement (CVA)
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put the company into Administration, offering some respite from creditor action and enabling:
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the company to continue
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property and assets to be sold.
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It is possible for the insolvent / potentially insolvent company to enter a Moratorium in which the company can enter into a “breathing space” period, where all actions against it by creditors will be stopped, whilst the company considers all options available to it. A Moratorium is achieved by way of court application, for which Lawson West can draft the application and provide full representation. Contact us today to discuss this option and whether it is the correct solution for your company.
You also have the option of Liquidating (‘winding-up’) your company. This means the company is closed-down, de-listed and its assets are sold and distributed to creditors and shareholders.
Member’s Voluntary Liquidation (MVL)
Where a Company is solvent, it can liquidate the company in a tax efficient manner. An IP would be appointed, with the assistance of Lawson West, and all creditors will be paid in full plus interest.
The risk of personal liability of the Directors’ can be greatly reduced, if continued trading is considered. Lawson West can provide robust advice to Director’s in relation to MVL’s and as to whether the Company meets the statutory tests of insolvency, as set out in the Insolvency Act 1986. Where a company does not meet the required test, we will provide advice with regards to the best alternative option for your company.
