Financial

Creditors may find themselves at a difficult situation when the company or business they lend money, is unable to pay them. They may therefore be forced to look for legal options of recovering their money. The information regarding the legal options available for recovery of the money is necessary. company voluntary arrangements are one of the legal options provided by the constitution to have creditors recover the money. However, there is another option involving liquidation of the company by a professional and appointed liquidator who then settle the debts owed to the creditors. The earlier option carries its advantages and disadvantages. company voluntary arrangement may offer an assured way of recovering the money since the creditors get to access the plan developed by the creditors. This option allows the company owing the money to continue existing. However, CVA may allow slow and partial payment of the owed money. Liquidation may however take more time and avail no security for recovery of money.