Generally, the company formally contracts to make agreed contributions to a licensed insolvency practitioner who distributes it among the creditors. A CVA, most typically, lasts up to five years and is a viable option for companies with historic debt problems, or one-off unforeseen causes of debt.

You must declare your bankruptcy to anyone lending you more than £500.

All of your bank accounts will be frozen when you go bankrupt. For them to be released you must apply to your Trustee (usually an insolvency practitioner).

You can still open new bank accounts – but the majority of banks close down any accounts of bankrupt customers, so it can be difficult.

A Company Voluntary Arrangement (CVA) is an insolvency service, available to companies with unsecured debts. They are available in England and Wales, and may follow Administration.

Generally, the company formally contracts to make voluntary insolvency agreements, contributions to an insolvency practitioner who distributes it among the creditors.

A CVA may be viable for companies where their product or service is selling well but the historic creditor debt is impacting cash flow.

If the company struggles with its agreed contributions during a CVA, it is possible to vary the agreed amounts as long as the requisite percentage of the creditors approve.

Prior to the commencement of a CVA, a company can apply for a moratorium to protect from legal action, and so Winding up Petitions cannot be issued against the company.

Creditors cannot recover interest or historical debts after the date of CVA approval and, once concluded, outstanding debts (including HMRC liabilities) will be written off.

If the company complies with the terms and agreements of the CVA, it may be saved as a result.