CVA – The disadvantages of company voluntary arrangements

If you are considering entering into a company voluntary arrangement (CVA), then you should weigh up the pros and cons of the process first, to decide whether or not a company voluntary arrangement is right for you or your business.

There are a number of disadvantages to applying for a company voluntary arrangement.

• If you do not follow the company voluntary arrangement, the arrangement will fail and your creditors are free to take further action, such as court action, against you.
• Creditors cannot petition for a company voluntary arrangement, which means the decision is left up to the directors – and directors often w ait until the company has deteriorated beyond a point where a company voluntary arrangement can help before they attempt to take action.

It is really important that you also look into the advantages of company voluntary arrangements before making the decision to apply for one.

More information

• CVA – What is a company voluntary arrangement?
• CVA – The company voluntary arrangement process
• CVA – Who needs a company voluntary arrangement?
• CVA – When to apply for a company voluntary arrangement
• CVA – How to apply for a company voluntary arrangement
• CVA – The advantages of company voluntary arrangements
• CVA – Insolvency and company voluntary arrangements