COMPANY DEBT MANAGEMENT PLAN

---

A Company Debt Management Plan can help a limited company that is struggling with both current and historical debts, but which could return to profitability if given some breathing space. Under this approach, all company debts are negotiated, and a manageable monthly repayment plan is agreed with creditors. This allows the company to continue trading while making affordable payments, avoiding the pressures of accumulated debt. Because this process is informal and not governed by the Insolvency Act, it can be implemented more quickly than a CVA, provided there is no active enforcement action from creditors.

• Cost-effective: Company Debt Management Plans are generally less expensive than a CVA over the repayment period.
• Business continuity: The company’s legal status remains unchanged, and there is no adverse effect on its credit rating.
• Debt resolution: Over a period of 12 to 60 months (or less), the company can become debt-free, with all outstanding debt potentially written off as part of a compromise agreement with creditors.
• Full creditor management: We handle all negotiations on behalf of the company, ensuring that the best possible deal is secured with all creditors.
   

A Company Debt Management Plan is an effective solution for resolving company debt problems, allowing the business to recover, return to profitability, and operate sustainably without formal insolvency proceedings.

It is a legally binding agreement with the company's creditors, allowing for as much as up to 80% of company's liabilities to be written off

Debts are significantly reduced, and by rescheduling the balance into regular monthly payments, the company's cash-flow is dramatically improved

The business continues to trade under the control of its directors

Minimum disruption occurs, and as it is not a formal insolvency, there is no adverse credit affect on the company

All ongoing contracts, leases, etc. continue as normal

Legal action by creditors is stayed

No investigation into directors’ conduct

No calling-in of overdrawn directors’ current accounts