Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors.
Bankruptcy is a formal court procedure which you can start or which one or more of your creditors owed at least £750 can start. We at Asmat & Co assist in filing for Bankruptcy and direct the best solutions in reducing your debts in the most amicable and cost effective method.
Liquidation is the process by which a company is brought to an end, and the assets and property of the company are redistributed.
Liquidation may either be compulsory or referred to as a creditors’ liquidation or voluntary referred to as a shareholders’ liquidation, although some voluntary liquidations are controlled by the creditors,
Company Voluntary Arrangement (CVA)
A CVA is a contract between the company and its creditors. If a company is a viable business looking to return to profitability, it can enter into a CVA. Such arrangements are particularly useful when a company that is basically profitable suffers a one-off difficulty, such as a large bad debt. CVA’sare used as a way of getting the company back on its feet.
In addition, a CVA can sometimes be an alternative to liquidation even if the company is not looking to return to profitability, so long as it provides a better return to creditors.
A CVA involves putting a proposal to the creditors of the company to settle the company’s debts in full or in part over a period of time. It will bind creditors even if all of them do not agree with the process, so long as the relevant majority do agree.
This court-approved agreement with creditors enables the company to keep trading while also agreeing terms with the creditors to settle its debts. At the end of the agreed period, the irvine lawyers company exits the CVA, with its creditors having either received full or part payment, depending on the terms agreed.
Asmat & Co will assist in managing the above procedure and assist in the best possible manner to come to terms with its creditors.