Insolvency Explained By Our Insolvency Practioners
This insolvency advice page is designed to run through different insolvency terms that you may have heard of and to simply explain them in relation to how they would be used.
Please watch our video below or alternatively contact us now on 0844 704 8907 or fill in our contact us form.
Administration
Administration is a procedure available to a company that is insolvent. This process places the company under the control of an insolvency practitioner and the protection of the court with the following objectives: creditors are prevented from taking any action against a company whilst it is in administration, except with permission of the courts.
This may become an option if the company is under extreme pressure from creditors and needed to be protected.
Creditor Voluntary Liquidation
CVL is when the company ceases trading and liquidates. Any assets are realised and distributed to unsecured creditors.
Company Voluntary Arrangement
CVA as it is known is when a company proposes to pay back its unsecured creditors over a designated timescale dependent on what the cash flow can afford if its contribution based. The existing company trades on and the proposal is voted in by the unsecured creditors and administer by a licensed insolvency practitioner.
Contact Us
We hope you found this information helpful. If you would like to speak to us today please call 0844 704 8907 or alternatively you can fill in our contact us form.
