CVA – Company Voluntary Arrangement

If your limited company is insolvent, it can use a company voluntary arrangement (CVA) to pay creditors over a fixed period. If creditors agree, your limited company can continue trading.

Please Note: If you are a sole trader, or self employed, then an individual voluntary arrangement (IVA) is the correct solution for you.

What Is a CVA?

A CVA, or company voluntary arrangement, is a popular solution when your company is truggling financially. A CVA was created to allow you to continue trading, without liquidation, letting you work yourself out of trouble. As a director of the company, you retain control of the company, allowing you to continue trading without the worry of past debts draining your cashflow.

A CVA may be implemented even if a winding up petition has been issued. It stops creditor pressure from your creditors, even HMRC. It can also quicly improve your cashflow, allowing you to trade as you once did.

What Happens Next?

If you are worried about your company’s debts, you need to talk to someone. Our trained advisers will help you decide what the is best option for your set of circumstances.

  • The insolvency practitioner will work out an ‘arrangement’ covering the amount of debt you can pay and a payment schedule. They must do this within a month of being appointed.
  • They’ll write to creditors about the arrangement and invite them to vote on it.
  • The CVA is approved if 75% (by debt value) of the creditors who vote agree.
  • You’ll need to make the scheduled payments to creditors through the insolvency practitioner until these are paid off.

No-Obligation Help and Advice

If you would like to talk to one of our advisers for free, no-obligation help and advice, then complete the short form below and we’ll call back within office hours.

Before we can help you need to have the aswers to following questions:

  • Director’s Name(s)
  • Company Name
  • Company Address
  • Company Number
  • Contact Details
  • Main Reason For Financial Difficulties
  • Is There Any Urgent Creditor Action?
  • Number Of Employees
  • Approximate Business Debt Level
  • Anything Else You’d Like Us To Know


If you do not meet the agreed payment schedule, any of your creditors can apply to wind up your business.