— Licensed Insolvency Practitioners
Company Voluntary Arrangement
A CVA allows an insolvent company to restructure its debts and continue trading — reaching a legally binding agreement with creditors to repay a portion of what is owed over an agreed period of time.
3-5 Years
Duration
75%
Creditor Vote Required
Free
inital assessment
IS a CVA right for you?
Speak with licensed practitioners for a free, confidential assessment of your company's position.
Director's Helpline
What is a Company
Voluntary Arrangement?
A Company Voluntary Arrangement (CVA) is a formal insolvency procedure that allows an
insolvent — or financially distressed — limited company to reach a legally binding agreement with its unsecured creditors. In a CVA, the company proposes to repay a proportion of its debts over an agreed period, typically three to five years, while continuing to trade.
Unlike liquidation, a CVA is a rescue procedure. The company survives, employees keep their jobs, contracts continue, and the directors remain in control. For creditors, a CVA typically delivers better returns than they would receive through a formal liquidation — which is why they often vote in favour.
Key Fact
A CVA requires 75% of creditors (by value) to vote in favour for it to be approved. Once approved, it is legally binding on all unsecured creditors — including those who voted against it.
Is Your Company
Eligible for a CVA
Viable Trading Business
The company must have a realistic prospect of generating revenue to meet CVA repayments — typically alongside ongoing operational costs.
Significant Unsecured Debt
CVAs are typically used where there is a meaningful level of unsecured creditor debt — often HMRC arrears, trade creditors, or supplier disputes.
Director Cooperation
The directors must be willing to be transparent about the company's finances and committed to operating within the terms of the CVA.
Affordable Repayment Level
The proposed monthly repayment must be credible and sustainable — offering creditors a genuine improvement on what they'd recover in liquidation.
Speak to a specialist
Free, no-obligation consultation with our licensed insolvency practitioners.
or call us directly
01257 818 197
Company Rescue Options
- CVA
- Administration
- Pre-Pack Administration
- Winding Up Petitions
Advantages & Disadvantages
of a CVA
The CVA process is managed by a licensed Insolvency practitioners who act as the "nominee" and then "supervisor" of the arrangement. Here's an overview of the typical journey:
Free Consultation & Assessment
We assess your company's financial position, trading outlook, and the level of creditor debt to confirm whether a CVA is a realistic option.
CVA Proposal Drafted
Our licensed practitioners prepares a formal CVA proposal — including a statement of affairs, proposed repayment terms, and a projected financial forecast.
Creditor Vote
The proposal is circulated to all creditors, who have 14 days to consider and vote. If 75% by value approve, the CVA is formally approved.
CVA Commences
Monthly contributions begin, supervised by our practitioners. We manage all creditor
communications and compliance throughout.
Successful Completion
On successful completion of the CVA — typically 3–5 years — any remaining unpaid unsecured debt is legally written off and the company is fully rehabilitated.
HMRC & CVAs
HMRC is frequently the largest creditor in CVA cases — particularly for VAT, PAYE, and Corporation Tax arrears. HMRC has become increasingly willing to support CVAs in recent years where there is a credible business plan. Our practitioners have significant experience negotiating with HMRC in these situations.
Frequently Asked
Questions
What happens if the CVA fails?
If a company fails to meet its CVA repayments, the supervisor can terminate the arrangement. At that point, the company typically enters liquidation — usually a Creditors' Voluntary Liquidation (CVL). It's important that any CVA proposal is genuinely achievable from day one.
Can a director take a salary during a CVA?
Yes — directors can continue to receive a reasonable salary during a CVA. The level must be justified within the CVA proposal and is typically approved as part of the arrangement.
Will a CVA appear on Companies House?
Yes. A CVA is a matter of public record and will be filed at Companies House. It will also appear on credit reference databases. However, it is significantly less damaging to a company's reputation than liquidation.
How long does a CVA take to set up?
From initial instruction to creditor vote, the CVA process typically takes 4–8 weeks. In urgent situations — for example where a winding up petition has been issued — the process can be expedited.
Does a CVA affect personal liability for directors?
A CVA only binds unsecured creditors of the company — it does not release directors from personal guarantees. If you have personally guaranteed company debts, these remain your personal responsibility. Our advisors will explain the implications in full during your consultation.
— OPTIONS
Other Company Rescue Options
Company Rescue
Administration
Protect your company from creditor action while an administrator develops a plan to rescue or realise its value.
Company Rescue
Pre-pack Administration
Sell the viable parts of your business before entering administration — a fast, confidential rescue for the right situations.
Company Rescue
Creditors' Voluntary Liquidation
If the company cannot be rescued, a CVL is the most controlled and director-led way to wind up an insolvent company.