Thursday, 2 August 2012
A CVA can stop a winding up petition
A CVA can stop a winding up petition. However, according to our sources at HMRC approximately only 1 in 60 people promising to file a CVA in order to stop an HMRC petition actually do so!
This makes no sense! If you promise to file a CVA then you must be pretty sure that your business is viable going forward. So what is holding people back?
Putting a CVA together is a complex process but KSA Group can make it easier! Within 2-5 days of an initial meeting we can have a formal report of 30 pages setting out the options for the board.
Over the next few days or weeks, following our appointment by the board, we can put together a forecast for the business from our financial director, Andrew Hunter. The CVA proposal is then approved by the insolvency practitioner acting as nominee and then it is filed at the court.
Once this happens all creditors' legal actions are stopped. Even if time appears to be running out prior to the actual filing of the CVA in court we can talk to creditors and ensure that the winding up petition is not advertised as this would kill the company!
If you don't act???
Well, HMRC will send you this letter: