Company in a CVA owes me money

[Dick Dastardly]

I have just found out that a company that owes me money (and owes my limited company money), entered into a voluntary arangement a few months ago. I thought that in order to do so, a business had to notify all of its creditors?

[ChouMeiWang]

Generally, all they need to do is open dialogue with the majority of creditors - those with the greatest debt owing. This might be a single entity but also remember the that HMRC gets first dibs on any wedge.

Good luck with this - it's a constant problem.

[blindswelledrat]

In theory they are.
Whoever arranges the CVA writes to all the creditors.
You must have just been missed of the list. It doesn't actually affect anything.
If you are on the list- you never see a penny
If you are not on the list- you never see a penny

[Road2Ruin]

ChouMeiWang said:

Generally, all they need to do is open dialogue with the majority of creditors - those with the greatest debt owing. This might be a single entity but also remember the that HMRC gets first dibs on any wedge.

Good luck with this - it's a constant problem.

I thought the HMRC preferential creditor thing went out a few years ago!

[Dick Dastardly]

My solicitor has just sent me a copy of the Notice to Registrar of Companies of Voluntary Arrangement Taking Effect. In it, HMRC are listed as the main creditor and then so is another firm. My debts are actually a lot larger than the other firm so I'm going to try and get in on the CVA, espcially as it's set-up to pay back 100 pence in the £.

[3200gt]

Dick Dastardly said:

My solicitor has just sent me a copy of the Notice to Registrar of Companies of Voluntary Arrangement Taking Effect. In it, HMRC are listed as the main creditor and then so is another firm. My debts are actually a lot larger than the other firm so I'm going to try and get in on the CVA, espcially as it's set-up to pay back 100 pence in the £.

And I bet the "other" firm is the landlord who just happens to have the same name as the director of the closing Company! Takes all the cash as back rent and there's f*** all left for the "real" creditors.
Happened to me twice this year! 100p in the £, isn't ever going to happen, especially after the lawyers have had their slice.
Fight for your money but don't depend on it.

[jon-]

3200gt said:

Dick Dastardly said:

My solicitor has just sent me a copy of the Notice to Registrar of Companies of Voluntary Arrangement Taking Effect. In it, HMRC are listed as the main creditor and then so is another firm. My debts are actually a lot larger than the other firm so I'm going to try and get in on the CVA, espcially as it's set-up to pay back 100 pence in the £.

And I bet the "other" firm is the landlord who just happens to have the same name as the director of the closing Company! Takes all the cash as back rent and there's f*** all left for the "real" creditors.
Happened to me twice this year! 100p in the £, isn't ever going to happen, especially after the lawyers have had their slice.
Fight for your money but don't depend on it.

How do people get away with this? Seems like a nice money spinner.

[3200gt]

Because its easier to steal money than earn it?

[Rude-boy]

:sigh:

repeat after me:-

“Cheque’s in the post.”
“I don’t usually sleep with people on first dates.”
“I won’t cum in your mouth.”
“My CVA will pay out 100p in the pound.”

[James P]

Dick Dastardly said:

My solicitor has just sent me a copy of the Notice to Registrar of Companies of Voluntary Arrangement Taking Effect. In it, HMRC are listed as the main creditor and then so is another firm. My debts are actually a lot larger than the other firm so I'm going to try and get in on the CVA, espcially as it's set-up to pay back 100 pence in the £.

Not receiving the CVA documents before the creditors meeting approves the CVA has no effect as said earlier. The CVA is binding on all creditors who were entitled to vote whether or not they actually received notice. If you think that this amounts to either misconduct in the course of approving the CVA or that you have been unfairly prejudiced then you can go back to court although it will be at your cost.

You do not have to "try" to get into the CVA, this is automatic. However if you have been omitted from the list of creditors, will including your liability still mean that creditors are going to be paid in full? I suggest that you get a copy of the CVA proposals and Chairmans report on the creditors meeting (the proposals may have been modified before being approved) and then see what is what.

If HMRC are the largest creditor then the CVA is likely to be set up for 5 years unless the payment in full is achieved earlier than that. This is a long time and the CVA may not survive the duration.

Good luck

[maser_spyder]

Road2Ruin said:

ChouMeiWang said:

Generally, all they need to do is open dialogue with the majority of creditors - those with the greatest debt owing. This might be a single entity but also remember the that HMRC gets first dibs on any wedge.

Good luck with this - it's a constant problem.

I thought the HMRC preferential creditor thing went out a few years ago!

It did.

Enterprise Act 2002 (ish) IIRC?