Leading solicitors practice, Just Costs Limited, goes into CVA

2 December 2016

Reports reveal Just Costs Limited has gone into a company voluntary arrangement with its creditors, expecting to pay back 100% in the pound. The firm owes a total of £829,000 to creditors, including landlords and HMRC.

Based in Manchester and London, the firm specialises in personal injury costs, clinical negligence and commercial litigation. 

The business will continue to trade with full support from its lenders and investors. Manchester-based Bell Advisory was appointed CVA supervisor in October when the majority of creditors accepted the CVA in a creditors meeting. 
The firm said in a statement:

“Following the introduction of fixed costs for high-volume/low-value personal injury work and the introduction of the costs management process, we have had a number of challenges to meet over the last couple of years. We have consolidated from four to two offices. We have reduced our headcount from 110 to 70.”

“Our major challenge has been to move from cases with a 90-day matter cycle to over 12 months, compounded by the fact that HMRC treat our work in progress as income, even when it has not been invoiced. This lead to the arrangement we have recently entered into with HMRC.”

company voluntary arrangement is a formal deal between the company and its creditors allowing all or a proportion of debt to be paid back over three to five years. A CVA ensures the business can continue running, giving a greater return to creditors than say, administration.