The Older - but still useful - type of Company Voluntary Arrangement proposal
Section 1 The Insolvency Act 1986
When creditors are pressing, bailiffs are attending, county court claims and judgments are flying around, or the tax man is threatening distraint then what are the pros and cons of each type of Company Voluntary Arrangement proposal?
The older type of Company Voluntary Arrangement proposal is the one that does not grant a freeze on creditors actions ahead of the creditors meeting called to consider the proposal. These proposals are under Section 1 of The Insolvency Act 1986.
One would think that as the alternative type of Company Voluntary Arrangement proposal (under Section 1A of The Insolvency Act 1986) does give a freeze on creditors actions then the older type of CVA might not now be used at all. That is far from the truth. A Section 1 Insolvency Act 1986 CVA has many advantages.
The left hand index to this page addresses questions you might have on each type of Company Voluntary Arrangement (CVA) so that you can determine and then choose which is better for your Company's particular circumstances.
Alternatively Purnells Insolvency Practitioners can help you make the right choice, For insolvency advice and a FREE INITIAL MEETING please contact us.