Voluntary Arrangement Advice

At Forbes, our specialist insolvency team can support either the business or creditors with expert company voluntary arrangement advice on the process, eligibility and any other considerations that need to be made before entering into a CVA.

More about Voluntary Arrangement Advice

A Company Voluntary Arrangement (CVA) is a formal process that enables a company that owes money to creditors to enter into an agreement with the creditors about repayment of what is owed. This agreement is essentially a compromise that is most often used if the business has a good chance of recovery as a viable company, rather than being dissolved entirely and creditors having to wait for asset realisation to receive any repayment.

How does a CVA work?

How does a CVA work?

When a business with debts wants to enter a CVA with their creditors, there has to be a vote between the creditors to see if this is agreeable for the majority of them. The vote must pass by a majority of creditors representing at least 75% in value of those voting.

If the CVA is voted through, all creditors are legally obliged to the terms of the arrangement, which will outline a structure of repayment for the company to make over a set period of time. This will usually mean that the business pays monthly sums to the supervisor of the CVA, which is divided between creditors.

A CVA can sometimes also involve the business selling some assets to repay creditors from the funds raised. This will be outlined in the terms of the arrangement if so.

The proposed repayment schedule and arrangements need to be approved by creditors and overseen by an insolvency practitioner or licensed supervisor to ensure that it's realistic.

It's often the case that creditors receive more of the funds they are owed through a successful CVA than they would if the business was liquidated, so creditors are often open to this route.

Getting expert company voluntary arrangement advice

Getting expert company voluntary arrangement advice

It's important that all of the parties involved get specialist company voluntary arrangement advice before entering into an agreement as all of the potential outcomes and consequences need to be understood. The arrangement is legally binding, so taking legal advice beforehand is necessary.

With extensive experience in supporting businesses in this area, we can offer accurate advice to help you make an informed decision about how to move forward. If you want specialist voluntary arrangement advice and support, the team at Forbes can help.

Our dedicated Insolvency team

Chris Bowers.jpg

Partner and Head of Department, Insolvency

Chris Bowers


Paralegal, Insolvency

Harry Silverman

Contact Us

If you have an enquiry then please fill in your details and someone will contact you.

0800 689 0831 - Monday - Friday: 09:00 - 17:00

Request a call back

By submitting your enquiry you agree that Forbes can contact you.

© 2024 Forbes Solicitors is the trading name of Forbes Solicitors LLP Offices in Preston, Manchester, Salford, Blackburn, Blackpool, London and Leeds UK Main Office: Rutherford House, 4 Wellington Street (St Johns), Blackburn, Lancashire, BB1 8DD • Vat No: 174 394 344 Forbes Solicitors is authorised and regulated by the Solicitors Regulation Authority (SRA No. 816356). Details of the SRA’s Standards and Regulations can be found here.

This website has implemented reCAPTCHA v3 and your use of reCAPTCHA v3 is subject to the Google Privacy Policy and Terms of Use.