A sole proprietor
voluntary arrangement, briefly put, is a way to ringfence your business
and stop creditors attacking you while you rebuild things or otherwise
rearrange your procedures to the betterment of the business.
A sole proprietor
voluntary arrangement allows a viable but struggling business to repay
some, or all, of its historic debts out of future profits, over a period
of time to be agreed. This puts it on a par with other better known
terms like Company Voluntary Arrangement (CVA) or Individual Voluntary
Arrangement (IVA). The actual legal term does not exist, so it will
be a CVA or IVA that will be put into place.
Some sole proprietor
voluntary arrangement benefits for your business:
• Can improve
• Stop pressure from HMRC and crown sources while the arrangement
• It can cut costs quickly.
• The ability to terminate landlords’ leases without cost
and simply walk away from the lease.
• The ability to terminate directors or managers contracts too.
• Terminate burdensome customer contracts.
• There are much lower costs than Administration.
• It can terminate employment contracts, leases and burdensome
supply contracts for no cash cost and there is no need to consult
with employees, simply to issue P45s to terminate employment.
There are also other
ways to consider which will benefit an ailing sole proprietorship which
may be more suitable for your own situation. Insolvency is never a one-size-fits-all
matter, and we will put together a solution made especially for your
If you would like
to talk about a sole proprietor arrangement to a specialist with 17 years
corporate insolvency experience then enter your details into the web
form below for a no-obligation chat.
if you need help with personal debt (rather than business related debt)
go to our free debt
management plan application form.
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