Creditors Need to be Empowered in Company Voluntary Arrangements

Company Voluntary Arrangements (CVA) can make creditors feel alienated and powerless, so they tend to accept whatever repayment deal is being offered to them. A creditor with little knowledge of their democratic rights will see 30p in the £1 as better than nothing. The majority of creditors are often ill informed, and many think if…

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Take Control of Your Business before Creditors Do

If your business is in financial trouble, the earlier you address the problem, the more doors will be open for you to find a solution. The longer you leave it those doors will begin to close. Prompt action can prevent creditors from losing patience and issuing you with a winding up petition; leaving your business…

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Time To Pay Arrangements Can Do More Harm Than Good

According to the most recent figures available, around 200,000 businesses have entered Time To Pay (TTP) agreements with the HM Revenue & Customs (HMRC) in the past 18 months, deferring over £5bn in taxes.   TTP arrangements allow businesses that are unable to pay taxes on their due dates to make monthly payment over a period…

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Miss Sixty Judge Calls for Improved Insolvency Practitioner Regulation

In July, I suggested there should be an urgent review of how insolvency practitioners (IPs) are regulated and following a high-profile complaint by a judge it has become evident there are many others who share this opinion. Earlier this month, during an appeal against a Company Voluntary Agreement (CVA) for Sixty UK – owners of…

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Portsmouth Defeat HMRC in Landmark Legal Case

As I mentioned in an earlier blog, the reason most football clubs are facing financial difficulties is simple: their expenses exceed their income. Portsmouth FC are no exception and currently facing an uphill struggle to remain solvent. However, their battle became a little easier earlier this month after a high court judge rejected claims by…

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What is an Insolvency Practitioner?

An insolvency practitioner (IP) has several roles and under the Insolvency Act 1986 can act as a liquidator, administrator, nominee and supervisor in matters relating to bankruptcy. They are authorised by the Secretary of State for Trade & Industry, the Insolvency Practitioners Association (IPA) or one of the other bodies recognised under the Insolvency Act.…

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JJB Sports Complete Company Voluntary Arrangement

JJB Sports owners are ‘delighted’ to have concluded their company voluntary arrangement (CVA) last month. The sports equipment retailer entered into a CVA with creditors and shareholders in May 2009 to avoid collapse. But what is a CVA? Companies apply for CVAs when they’re overwhelmed by debt liability and, as a result, unable to trade.…

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