COMPANY VOLUNTARY ARRANGEMENT ("CVA")

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A Company Voluntary Arrangement (CVA) allows a financially troubled limited company to reach a legally binding agreement with its creditors, enabling it to repay all—or, as is more common, a percentage of—its debts over an agreed period. A CVA is particularly suited to companies that remain viable and profitable but have been impacted by bad debts or a one-off financial problem. It allows the company to continue trading under the control of its directors, without pressure from creditors.

• Debt reduction: Up to 80% of debts can be written off, with the remainder paid in manageable monthly instalments over several years.
• No director investigation: Unlike liquidation or administration, there is no investigation into directors’ conduct, and no risk of disqualification.
• Business continuity: The company can continue to operate as normal, maintaining contracts, staff, and trading relationships.
   

A CVA provides a practical solution for companies seeking to rescue their business, restructure liabilities, and continue trading in a controlled and legally protected environment.

CVA is a legally binding agreement with the company's creditors, allowing as much as up to 80% of company's liabilities to be written off

Debts are significantly reduced, and by rescheduling the balance into regular monthly payments, cash-flow is dramatically improved

The business continues to trade under the control of its directors

Minimum disruption occurs (it is probable that customers will be unaware of the CVA)

CVA enables onerous contracts, leases, obligations etc. to be terminated

Legal action by creditors is stayed

No investigation into directors’ conduct

No calling-in of overdrawn directors’ current accounts