If your company is under serious pressure, but should the historic debt be removed, the business remains viable, then a Company Voluntary Arrangement (CVA) could be the answer How Does a Company Voluntary Arrangement Work

As small to medium sized companies continue to face financial trouble, business owners should be aware of the different solutions available to offer company debt rescue Small to medium sized businesses continue to be under significant financial pressure due to the general economic slowdown and the difficulty of obtaining credit

Running a business that is not a limited company means you are classed as self employed This is true whether you employ a number of staff or are a sole trader on your own

Is your business in financial trouble, unable to pay its debt and facing probably closure This is precisely the situation that a Company Voluntary Arrangement (CVA) was designed for - it is designed to rescue a business where it is unable to pay its debts and is facing closure

For those with a personal debt problem bankruptcy can be a very effective solution If you run a company either as a director or sole trader this could have implications for you

If a limited company is wound up, the directors could be liable for its debts if they have allowed the business to trade while it was insolvent Winding up is the forced closure of a company

As the economy begins a fragile recovery, winding up petitions will continue to be used as a method of debt collection However, the cost of issuing a winding up order is often considerable Despite the recent figures suggesting that the British economy moved out of recession in the last quarter of 2009, there are very few who believe that the recovery will not be long and difficult

A number of companies are struggling financially in the current economic downturn with cash flow problems and mounting pressure from creditors If it looks like you are facing insolvency, particularly where there is a large debt burden, a company voluntary arrangement (CVA) may be a good solution to affect a business recovery

Debt collection strategies such as the issuing of winding up petitions are likely to be more widely used as the number of companies in financial difficulty continues to increase into 2010 and 2011 It looks increasingly likely that the UK economy will come out of recession during the final quarter of 2009

It is not unusual for directors to take on personal debt to support their business If the company fails, directors are then left holding the can for these debts which they are unable to repay