COMPANY DEBT MANAGEMENT PLAN

 A Company Debt Management Plan can be agreed and implemented in circumstances where a company is struggling to pay its current and historical debts, but with some breathing space from such accumulated debt, could return to profitability. 

All of the company debt is negotiated, and a monthly, manageable payment is agreed, so that the company can continue trading whilst making affordable payments to its creditors. Also, as this process is not governed by the Insolvency Act, and is an informal process, it is quicker to instigate, as long as there is no serious enforcement action being taken by any creditor.

Company Debt Management Plans cost less than a CVA over the period, and quickly gives the company breathing space to be able recover and become viable and profitable once again, without any change in the company's legal status or any adverse affect on the company's credit rating. They are an effective method to resolve company debt problems, and in between 12 to 60 months (or less), the company will be debt free, with all the outstanding debt being written-off as part of the compromise deal agreed with creditors.

From the outset, we will deal with all creditors and will undertake all negotiations on the company's behalf to ensure that the best possible deal is secured.

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

Debts are significantly reduced, and by rescheduling the balance into regular monthly payments, 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