Entered Into A Voluntary Agreement
A voluntary agreement with your creditors has many benefits for your business. One of the most important, especially in the short term, is that a CVA puts an end to pressure (for example. B the resolution of threats) from your company`s creditors. Voluntary agreements are only suitable for viable companies that can repay their creditors under the agreement. An insolvent and unsustainable business cannot enter into a CVA because it cannot repay its creditors. As a general rule, the official recipient should attend the referral hearing and/or report to the court. As a general rule, the report should be fairly short and should focus on the conduct of the bankruptcy trustee, any non-compliance with legal obligations, known (bankruptcy or related) violations, and details of a previous bankruptcy. The report should also determine whether or not a return has been filed, provide succinct information on known assets and liabilities, and provide an estimate of the official beneficiary`s taxes, costs and expenses. The official recipient should also include all facts that could have a significant impact on the views of creditors considering a proposed voluntary agreement, such as non-disclosure .B information, under-value transactions, preferences, illicit goods for sale to HP, etc. In this guide, we explain what a voluntary agreement (CVA) of the company is, how a voluntary agreement could help your business start-up and whether a CVA is the best option to facilitate a reversal of the trend in your business.
If the creditors vote against the agreement and the 75% agreement required cannot be reached, the agreement will fail. In this case, the company has two options: submit a revised proposal in the hope that it meets the needs of your creditor, or put your business into voluntary liquidation. Where a bankruptcy has not entered an IVA prior to bankruptcy and has assets or there is a clear potential for a proposal for an IVA, the examiner should draw the liquidator`s attention to the provisions of the voluntary agreement and, if necessary, make available to the bankruptcy a list of the local judicial administrators of the Rota of the official judicial administrator with whom he can discuss the matter. A voluntary agreement with creditors provides flexibility for the debtor. It may include assets that are not normally available in the event of bankruptcy, such.B as the use of third-party funds or income from the debtor`s continuing trade or employment. It gives the debtor more say in how his assets are treated, for example. B creditors may allow the debtor to exclude and retain certain assets such as his home.