What are the Advantages of a Company Voluntary Arrangement (CVA)?
- It is a flexible so creditors see a better return.
- Debt repayments are consolidated into one single payment.
- Can freeze interest and charges.
- Stops pressure from VAT, PAYE and tax payments
- Legally-binding tool that offers protection from creditors.
- Terminates employment and supply contracts.
However there are also Disadvantages of Company Voluntary Arrangement (CVA)
- Some creditors may dislike the length of time that a CVA takes.
- The company has no credit rating, so this can difficult to run with current supplier.
- Obtaining agreement from the bank may be challenging.
- The proposal is then filed at court, where it is printed and sent out to all creditors.
For any further information about the CVA, you can explore here what is a Company Voluntary Arrangement?Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members
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