What is a company voluntary arrangement?

A company voluntary arrangement (or CVA) allows directors of a financial distressed company to reach an agreement with its creditors regarding payment of its debts.  A CVA offers a positive way forward for a potentially viable business

The process

The CVA process has to be carried out by a licensed insolvency practitioner but unlike administration and liquidation the directors remain in control. This process is not dissimilar to the Chapter 11 process in the US where companies attempt to trade out of difficulties while receiving Court protection from creditors.

Advantages of a CVA are that creditors cannot take action against the company during the CVA and once it has been completed the company has no liability to its pre CVA creditors.  Although a CVA is not suitable for every financially distressed company it can allow the company to trade through its difficulties and give the directors more time to get their finances back on track without threat from creditors.

When might a CVA be appropriate?

  • When a company is struggling under the burden of debts but still a viable business.
  • For directors wishing to retain control of the company so it can trade out of difficulties.
  • Where creditors can be reassured that the repayment proposals are realistic.

Key points to remember

CVAs are usually only suitable for companies that have a potentially viable business not too damaged by a prolonged period of financial difficulties. Seeking early advice can mean the difference between rescue and insolvency.

How can we help?

Our experts are able to help you maintain business’s critical cashflow functions – by sitting alongside you in negotiations with suppliers, HMRC and banks and even providing interim management solutions.

Hayley Watson


Norwich office contact details:

Cambridge office contact details:

Hayley started her career working at McTear Williams & Wood Limited in 2005 and is a Licensed Insolvency Practitioner advising companies and individuals experiencing financial difficulties and orks with a variety of stakeholders to establish and implement the best strategy for individuals and companies experiencing financial difficulties.

Hayley acts as an Insolvency Practitioner in all forms of corporate insolvency including creditors’ voluntary liquidations, compulsory liquidations, solvent members’ liquidations and company voluntary arrangements as well as advising individuals where she acts as an insolvency practitioner in individual voluntary arrangements and bankruptcies.

Hayley qualified as a Licensed Insolvency Practitioner in 2019 and wasw appointed  Director in March 2024.  She is currently Chair of the R3 Eastern region committee and has over 19 years of experience in insolvency.

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