Week 12 - Insolvency - Voluntary Arrangement with Creditors

Question 1

What does a voluntary arrangement with creditors mean?

Answer 1

You go to them, admit you’re having difficulty, and explain how you will pay

Question 2

What was voluntary arrangement with creditors introduced by?

Answer 2

The Insolvency Act 1986

Question 3

What was the aim of creating the voluntary arrangement with creditors?

Answer 3

Save a company from being fully wound up and keep them going until the thing that was negatively affecting them was no longer an issue