Should I do A CVA?

[babyboy]

Hi all.

Am new to this forum,but am trying to get some independant advice on CVA s.

Basicaly we have debts in our company adding up to 15k,some which date to approx 3 years ago and a couple of new ones from february of this year.

We have had a couple of hard years,but are now starting to turn the corner and i feel i really want to continue with the company and make a good go of things.

The debts we have are all ccjs,some from a few years ago,that we have not been hassled about,but the later ones we are being pusued by balifffs etc.

Now to be clear to you all i dont not want to pay these debts,i just need time to do it.

We do not owe any monies to the bank nor to the inland revenue or vat.

To this end i contacted a company and they suggested the CVA route.. but that it was going to cost £1500 plus vat(which we could pay over 4 to 6 weeks)

I know this would give us the restart we need and the time to pay the creditors of, but i do think it is a lot of money to be paying to a CVA company, which i might be better of using to actually paying some of the debts.


I would be most grateful if you could give me any idea or thoughts on this.


chris

 

[Geoff T]

£1500 for a CVA over 4-6 weeks???

my advice is to "Shop around"...!

A decent solicitor wouldn't cost that much!!

 

[GRDCredit]

I think Lucy on here may be your best bet for some advice and help.

http://www.ukbusinessforums.co.uk/forums/member.php?u=42314

How long do you think it will take you to pay off the creditors left to your own devices? How many of them are there?

I have seen 'informal' CVAs set up before where a debtor makes a deal with his creditors to pay £x per month but if bailiffs are involved may be too late for this.

Speak to the blonde northern lass!

 

[Geoff T]

Welcome back Namesake - good weekend?

 

[GRDCredit]

Cracking weekend - did you miss me?

 

[Geoff T]

Cracking weekend - did you miss me?

were you not here then? thought you were just emptying Tesco + cutting grass as per norm

OP - just to add - Lucy gets my vote of confidence...I've referred some things to her...really knows her stuff...won't hesitate to do so again...

 

[toddle2u]

I would advise as previoulsy mentioned doing an informal CVA and setting up repayment deals with your creditors yourself. Even the ones where bailiffs are involved they will do a repayment plan. Ring them up and speak to them. I am sure if you take a reasoned approach you will save yourself £1500.

 

[Ian J]

Have you tried to do a deal with the bailiffs or perhaps going back to the County Court and asking them to make an order for periodic payments

 

[babyboy]

I havnt no,but that i think will be my plan,i suppose i natually assumed that once it was at that stage it was too late.
I also should of dealt with these things earlier before it got to this level..case of buring my head in the sand im afraid.

chris

 

£1500 for a CVA over 4-6 weeks???

my advice is to "Shop around"...!

A decent solicitor wouldn't cost that much!!

Hi all!!! Missed me?!?!?!?

I have just PM'd Chris, to be honest £1500 + VAT is cheap for a formal CVA

There is a lot of work involved in completing a formal CVA plus it gives the protection whilst the CVA is put in place prior to the creditors voting.

A solicitor put the proposals together but couldn't act as supervisor and nominee

Just as a comparison - for a CVA we would normally charge about £2500 and as the 2 Geoff's know we are not scam merchants and are certainly not the most expensive in the field

 

[Geoff T]

Hi all!!! Missed me?!?!?!?

what? - had you gone somewhere?

Just as a comparison - for a CVA we would normally charge about £2500 and as the 2 Geoff's know we are not scam merchants and are certainly not the most expensive in the field

that comes as surprise - and I'll confirm that Lucy's no scammer...

updated price duly filed for future reference...thanks Lucy

 

[nigelmarsh]

your company is a limited company right ? As such the bailiffs that I assume are High court enforcement officers are likely to be charging interest at 8
% per annum plus costs for each time they attend your premises .

If your company is insolvent , it is your responsibility as director to enter a CVA or stop trading .

If the Bailiff is a "county court Bailiff" you may be able to put them off and limit possible cost, however if your creditor passes the Judgement to us to enforce you will receive large surcharges every time we attend your property which will make £1500 seem very insignificant .

Speaking as a Bailiff my aim would be to obtain your assets to the value of the debt to safeguard my clients repayment of the debt before any likelihood of you filing for a CVA or filing for Liquidation .

 

[babyboy]

Hi everyone.

I would like to thank everyone for all there advice, was interesting to hear lucys advice and for once to hear it from the side of the baliff and what they would do.

I think id like to go down the route of trying to contact all of the people we owe money to and see if we can work something out.If i find i hit a brick wall then,ill go down the CVA.But i do want to face up to these debts and start paying back what i owe to people.

I just felt that the £1500 would of been better used to pay some debts,even though it doesnt give me any protection as a cva does.

babyboy

 

[nigelmarsh]

Give some thought to the issue of your insolvent position . IF YOU ARE UNABLE TO DISCHARGE YOUR DEBTS WITH YOUR CREDITORS AT THIS WINDOW IN TIME YOU ARE INSOLVENT AND AS SUCH WILL BE TRADING WITHOUT THE PROTECTION OF YOUR LIMITED LIABILITY PROTECTION . ie all transactions from this date on potential could result in you being personally liable ! if you are unable to manage your company through the difficult waters .

I WISH YOU LUCK