Company Voluntary Arrangement (CVA)

A Company Voluntary Arrangement (CVA) is a solution for companies grappling with debt repayment challenges.

It entails a formal agreement between a limited company and its unsecured creditors to settle some or all of the debts within an agreed timeframe. If creditors consent, the company can continue operating.
As licensed insolvency practitioners, we empower directors and sole traders with the confidence to forge ahead. Our practical and expert guidance enables you to alleviate the burden of debt and gradually repay creditors. The CVA provides flexibility, allowing directors to retain control of daily operations, sustain trading activities, and secure survival for the company. Together, we navigate the path towards financial recovery, empowering you to take charge of your company’s future.

Process: How CVA works,
step by step

If you’re really not sure if CVA is an option for you,
we’ll help you decide, step by step.

Step 1

Set up a free, no obligation consultation, meet or chat remotely with a qualified insolvency practitioner. We’ll have a frank conversation about whether CVA is the right option for you.

Step 2

Practical guidance on how to unburden your debt and repay its creditors over time, our expert team will provide personalised support, speak to creditors and deal with the bank.

Step 3 

As a supervisor, we co-ordinate the process of offering creditors a better alternative if your business might have been liquidated.

Step 4

Support the directors to remain in day to day control, carry on trading and avoid issues with HMRC.

Step 5 

Any outstanding unsecured debts will be written off at the end of the CVA.


A CVA works well for companies that are viable moving forward but are burdened with debt. It offers companies the chance to repay its creditors over time. CVAs are a very flexible tool and may also involve the sale of excess assets, refinancing or the introduction of external investment to contribute to repaying a company’s creditors.

A general rule of thumb is that a CVA should offer creditors a better alternative to what would be the case should the company be forced to enter into another insolvency procedure such as liquidation.

The length of a CVA will vary based on what a company can offer its creditors; sometimes lasting a very short period but can run for up to five years.

The advantages include (but are not limited to) the following:

  • Directors remain in day to day control of operations
  • A company and its business can continue to trade throughout the CVA
  • It can improve cash flow quickly as payments are structured to be manageable and affordable, also offering peace of mind in the long term
  • It can stop pressure from HMRC
  • It can stop the threat of a winding-up petition being presented by a creditor
  • There is no specific requirement for assets to be bought back by a successor company as is often the case with administration and liquidation sales. This can be particularly helpful where prospective purchasers have limited funding available
  • Personal guarantees offered by directors may be deferred or reduced in certain circumstances
  • Staff redundancy costs can be included in a CVA avoiding an initial cash flow hit to a company’s business. The employees affected may be entitled to make a claim from the government’s Redundancy Payments Service in respect of all or part of their redundancy entitlements when a company cannot afford to pay them
  • A CVA carries less stigma than other insolvency processes such as liquidation or administration
  • Any outstanding unsecured debts will be written off at the end of the CVA
  • A CVA can adapt if circumstances change

As licenced insolvency practitioners we advise, implement and oversee a CVA of a company.

In doing so, we have three distinct roles:


First, we act as an advisor to a company to help them structure a CVA proposal to put forward to their creditors. This may involve advising on practical restructuring strategies to return a company to profitability, discussions with key parties affected, and general support for directors and their other advisors in decision making in the period leading to the implementation of a CVA.


Second, we act as a Nominee whereby we confirm that the CVA is fit and fair to all those affected, is feasible (i.e. has a good chance of succeeding) and therefore should be put to creditors for their consideration.

Unsecured creditors can then vote on whether to accept the CVA proposal. This is coordinated through a virtual meeting during which creditors can ask questions and may suggest variations to the proposed CVA. If over 75% (measured in value of their claim) of those who vote accept the CVA proposal, then the CVA commences and is binding on all unsecured creditors.


Once a CVA commences, our role changes to that of a supervisor of the CVA. As a supervisor, we ensure that a company sees through its CVA commitments, as well as manage the process of repaying those unsecured creditors from money paid into the CVA by the company.

We can also coordinate adjustment to the terms of a CVA if circumstances change for a company, with the consent of creditors.

How do I find out about placing my company into liquidation?

The short answer is to give us a call on 020 8662 6070 or email us at By doing this we can provide an assessment regarding your company or personal circumstances. You can also find that our website provides a basic outline of the process that you as a director, sole trader or individual will typically undergo of placing a company into Liquidation.

What is a Company Voluntary Arrangement or CVA?

A company voluntary arrangement (CVA) is a legal agreement between a company and its creditors to repay their debts, usually through an agreed affordable monthly payment over a five-year period. The amount agreed to must be reasonable and usually results in a percentage of the debt being repaid and the remaining balance being written off. For an CVA to come into effect, at least 75% of creditors who vote on it must agree to its terms.