CVAs are a tool which is different from other formal insolvency procedures and often give your business a better chance of recovery. It is a statutory insolvency procedure that allows your company to make a series of monthly payments to creditors which are distributed among them on a proportional basis. This provides a fair and reliable deal for your creditors which can save your business from being put into administration or liquidation.


A company voluntary arrangement (CVA) is a form of insolvency that allows companies to pay back a percentage of their debts over a period of time. This arrangement can be beneficial for both the company and its creditors if approached in the right way. A CVA allows a company to continue trading during a debt repayment plan and if the payment schedule is met it offers a better return for creditors than liquidation or administration. It is also a process that allows directors to remain in control of the company and to retain their personal assets as long as they have not given a personal guarantee for the debts.


A company voluntary arrangement (CVA) is a form of restructuring that can be used to rescue a business as a going concern. It is often used where a company faces short-term cash flow problems, and where directors are prepared to remain in control of the company. Unlike insolvency, where directors are personally liable for the debts of the company, with a CVA the company is able to pay back its creditors based on current and/or future cash flow. This can help to stop creditor pressure and allow the directors to trade successfully.

Debt Relief

A CVA is a form of debt relief that allows a company to continue trading whilst repaying a proportion of its creditors over 3 to 5 years. It is the ideal rescue tool for a viable, sustainable business that is burdened by historic debts and is in danger of going out of business. Unlike liquidation, a CVA will allow the directors of the company to retain their positions and roles. They can also safeguard their homes if they have provided personal guarantees to creditors. The process of a CVA starts with a proposal being put forward by the director. This is then sent to all of the company’s known creditors and a decision procedure is called.


A Company Voluntary Arrangement is one of the most effective rescue tools for companies that are struggling financially. It allows directors to stay in control of the company while repaying creditors and avoiding the risk of being put into liquidation. It is a formal agreement which binds all of the company’s creditors, provided that it is accepted by more than 75% of those creditors voting for it. The CVA is a legal document that is supervised by an insolvency practitioner who works with the creditors to make sure the agreement works in their best interests.